Personal excess liability policies, sometimes referred to as umbrella insurance, provide protection beyond the coverage in your basic insurance policy. Even though your home and auto insurance provide protection from personal liability claims, the level of personal liability coverage is limited, leaving you exposed if someone files a substantial liability claim against you.

Liability umbrella policies provide an extra layer of protection beyond your basic homeowners or renters insurance. They are designed to cover larger liability claims that exceed the coverage limits of your primary insurance policies, giving you broad protection against personal liability.

Umbrella insurance is recommended in certain situations, such as employing a nanny who lives in the home, having a pool, or owning pets. These are just a few examples of liability risks where your exposures could potentially exceed typical homeowners policies. High net-worth individuals are also more likely to be sued for liability than others who lack the means to pay large claims.