GLOSSARY · INSURANCE

Umbrella insurance

A personal liability policy that pays after the liability limits of your car and home policies are used up, and often covers some claims those policies exclude. Insurers require minimum underlying liability limits before they will sell one. It protects savings and, in many states, future wages from a judgment larger than your other policies would pay.

Also called: umbrella policy, personal umbrella, excess liability insurance, personal umbrella liability
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CHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSFinding the Risks That Could Break Your FinancesCHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSUmbrella Liability Insurance and Your Yearly Insurance Review
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