What type of coverage does Personal Umbrella Liability Insurance provide?

Personal Umbrella Liability Insurance is designed to provide additional liability coverage beyond the limits of standard insurance policies, such as homeowners or auto insurance. This type of insurance typically adds an extra layer of protection, often starting with limits of $1 million and can go much higher.

The primary purpose of an umbrella policy is to safeguard individuals from major claims or lawsuits that could otherwise result in significant financial strain. When a standard policy reaches its limit during a claim, the personal umbrella policy can cover the excess, therefore, protecting the insured's assets and future earnings.

This insurance is not confined to residential properties, nor does it solely cover business liabilities or physical property losses. Instead, it is focused on extending overall liability coverage, making option B the most accurate representation of what personal umbrella liability insurance is intended to provide.