Umbrella insurance is a special type of liability insurance that provides coverage for liabilities above and beyond the standard or basic automobile or homeowner's insurance policies.
One of the most confusing aspects about umbrella insurance is that it isn't really "insurance" in itself, but rather a way to increase the limits on your current policies - whether you're looking for rental car coverage or homeowners' limits.
Umbrella policies are meant to help protect you against lawsuits that could be settled using your basic policy limits.
Umbrella insurance provides an additional layer of liability coverage that is available when all homeowners' policies have been used up.
Umbrella insurance generally provides liability coverage for:
Damage to property
Personal liability situations
Umbrella insurance does not cover bodily injury or property damage inflicted intentionally by the policyholder or a family member. This type of personal liability coverage may also not cover any intentional acts involving the insured's business.