Umbrella Policy
Insurance Glossary
A separate liability policy that pays after the limits on an underlying auto or homeowners policy are exhausted, usually sold in increments of one million dollars. Insurers normally require the underlying policies to carry specified minimum limits before they will write one. It covers liability rather than damage to the policyholder's own car or home, and some forms extend to claims such as libel or slander that the underlying policies exclude.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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