Umbrella policies provide extra protection beyond standard coverage, and they are available in increments of a million dollars.
Sometimes known as excess liability or personal liability insurance, umbrella insurance doesn’t stand alone. Instead, it adds another layer of liability protection on top of the liability built into other policies you have, including auto, homeowner’s or renter’s insurance. It’s designed to kick in when the liability coverage limits on those policies have been exhausted.
For example, if your teenage daughter causes an accident while driving one weekend evening and the driver of the other car suffers life-threatening injuries, the costs of their medical care can quickly surpass the liability limits on the auto insurance policy. What Everyone Should Know About Umbrella Insurance