What does umbrella insurance provide beyond standard policy coverage?

Umbrella insurance offers additional liability coverage that extends beyond the limits of primary insurance policies such as homeowners, auto, or boat insurance. This type of insurance is designed to protect the policyholder from major claims and lawsuits, providing a financial safety net when the primary insurance limits have been exhausted. For example, if a policyholder is involved in an accident that results in significant damages or injuries and the costs exceed their auto insurance coverage, umbrella insurance would cover the additional expenses up to the umbrella policy limit.

This product does not provide primary coverage for natural disasters, comprehensive health benefits, or coverage for long-term disability, which are typically addressed by other specific types of insurance policies. Thus, its primary value lies in enhancing overall liability protection.