An umbrella policy is a form of liability insurance that is a supplement to your liability limits on your auto, home, boat and recreational vehicle policies. An umbrella covers you when your policy’s liability limits are reached so you don’t need to make up the remaining balance yourself.

The extra policy protects your savings, your home, your assets and unearned income.

In the event of a lawsuit, an umbrella can help with your defense by covering legal fees and even extends your liability coverage in cases involving libel, slander and false arrest.