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Umbrella policy

An umbrella policy is liability insurance that covers a wider range of claims than the liability portion of your homeowners and auto insurance.

Expanded Definition

In an age of common litigation, those with assets often prefer to be well insured. But the liability coverage on your homeowners insurance is limited to certain kinds of claims as is your auto insurance. Rather than raise the limits on all such policies, it makes sense to carry a single umbrella policy that covers all of these risks.

Because your other policies cover the most common claims, your umbrella policy has few claims and tends to be inexpensive for sizeable amounts of coverage, often in the million dollar class or more.

Although umbrella policies provide broader coverage they do not cover professional activies nor do they usually insure against charges of slander or libel.

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