Umbrella Insurance

If you’re sued for damages that exceed  the liability limits of your car insurance, homeowners insurance, boat insurance or some other policies, an umbrella policy helps pay what you owe.  For instance if you have a car accident and the other party received a judgement against you for $600,000., but you only have $250,000 on your auto policy, then the difference of $350,000 would have to come out of your pocket.  If you have umbrella insurance, it would pay this difference plus your legal costs from the lawsuit.