Q: What is an umbrella policy?

A: An umbrella policy provides additional insurance coverage for certain losses that are not covered by your auto and homeowners insurance. If you own a home, have a retirement plan or have other significant investments, then you’ll want to protect them with an umbrella policy.

Q: Why do I need an umbrella policy?

A: An umbrella policy protects your assets that may be at risk if you are held personally liable for a claim that exceeds your auto or homeowners insurance policy. For example, if you don't have enough liability coverage to resolve a claim or a lawsuit, the person bringing the action might go after your home or your other assets to pay for damage.

When does an umbrella policy go into effect?

A: Your umbrella policy typically goes to work once the liability portion of your auto or homeowners policy has been depleted. For example, if you are sued because of an auto accident, your auto insurance policy will be used first to pay any liability. Then, if needed, additional liability coverage is available through your umbrella policy.