Umbrella insurance is extra liability insurance. Designed to help protect your assets and future, it covers you in the event of major claims and lawsuits. Umbrella coverage provides additional liability coverage above the limits of your homeowners’, auto, and boat insurance policies. The extra protection takes over when the liability on these other policies has been exhausted. Umbrella insurance may take the form of bodily injury liability and/or property damage liability. Examples are things like a serious car accident in which you’re at fault and someone is badly hurt; your dog biting someone or destroying another person’s property; your child causing accidental damage at his or her school; or a visitor to your home falling and being hurt (just to name a few). Umbrella coverage can also provide coverage for claims that may be excluded by other liability policies, including false arrest, libel, slander, shock/mental anguish, and liability coverage on rental units you own.