Umbrella policies rest on top of your auto and homeowners liability policies and provide extra coverage in case of a lawsuit that exceeds the limits on the base policy.
Typically, umbrella policies have relatively low premiums compared to the amount of coverage that is provided. They also extend limits to other things that are not listed under the standard liability allowances. Umbrella policies are highly recommended as they provide the insured with higher limits that could possibly save them millions of dollars if a liability claim occurs.
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