Umbrella Insurance Policy
Also known as Umbrella Policy
Extra liability coverage that kicks in once your homeowners or auto policy limits are exhausted.
In plain English
An umbrella policy adds an extra layer of liability protection — often $1 million or more — on top of your homeowners and auto insurance, covering large judgments those policies alone wouldn't fully pay.
Umbrella policies are relatively inexpensive and worth considering once you have meaningful assets (like home equity) that a lawsuit could otherwise put at risk.
Where you'll run into it
Guides and tools on TheBuyingPath that cover umbrella insurance policy in context.
Related terms
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