Umbrella insurance

Umbrella insurance is a form of liability insurance that provides coverage when liability exceeds the limits of other insurance policies, such as auto insurance or homeowners insurance. It can also act as primary insurance for losses not covered by those underlying policies, distinguishing it from excess insurance, which typically only extends existing limits. When an insured individual faces liability, their primary policies pay up to their respective limits, and the umbrella policy covers any remaining amount, up to its own limit.

Umbrella insurance is predominantly offered in the United States.