What is umbrella liability?
umbrella liability is If your auto and home are insured with the same carrier, you probably can get supplemental liability coverage from your insurer. This is generally a very good and affordable idea, but only if you have underlying wealth that needs to be shielded from lawsuits. By insuring your car and home, it is cost- effective for your insurer to extend bigger-dollar liability coverage to both areas (hence the ‘umbrella’ concept). If, for example, you have 100/300 auto liability ($100,000 liability for each person insured in an accident; $300,000 total liability for the accident) and $100,000 liability on your homeowner’s insurance, you can extend this to $1 million for a few hundred bucks a year.