McKayla Girardin, Car Insurance Writer
Umbrella in insurance means a type of policy that extends the liability limits of existing home or auto policies and applies to a wider range of situations than a standard insurance policy. The word “umbrella” is used to symbolize the expanded coverage and protection offered by umbrella insurance. In other words, umbrella policies are a metaphorical umbrella of protection over the policyholder and their assets.
Umbrella insurance policies also provide extended protection in legal situations, like if the policyholder is sued for libel or slander. Umbrella policies are generally designed for people with at least $1 million in assets, and you need to have the highest available limits on a home or auto policy before you are eligible to purchase an umbrella policy.
To learn more, check out WalletHub’s guide to umbrella insurance.
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