What Is Umbrella Insurance Policy?
An umbrella policy is additional liability insurance that extends coverage beyond the limits of a homeowners, auto, or landlord policy — commonly used by rental property owners to cover large liability claims.
Why it matters
A single lawsuit from a tenant or visitor injury can exceed a standard policy's liability limit; an umbrella policy is a relatively low-cost way to cover that gap.
Related Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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