Glossary term
Umbrella policy
Umbrella policy: Extra liability coverage—usually $1 million or more—that sits above your auto and home limits. Requires underlying limits of about 250/500.
Where this term matters
Guides and entries on this site that use the term.
Guide
What Liability Limits to Choose
How to pick bodily injury and property damage limits: the state minimum vs 50/100/50 vs 100/300/100, what each protects, what each costs, and when an umbrella policy makes sense.
Entry
What Happens When an Auto Accident Exceeds Your Liability Limits?
Learn what happens when crash damages exceed your liability insurance limits, how personal liability works, and how to evaluate coverage options.