UMBRELLA COVERAGE
Umbrella insurance protects you with extra liability coverage to supplement your current insurance policies. With some policies, this secondary insurance kicks in only if claims exceed the coverage from your primary insurance.
Other umbrella coverage “drops down” to cover losses when the primary insurance doesn’t pay in full or cover the contingency. Regardless, an umbrella policy is probably unnecessary unless you’ve already accumulated significant wealth that you want to protect from a lawsuit. It also may be less expensive to increase limits on individual policies (home, auto, etc.) than to buy an umbrella policy.
