Personal Umbrella Policies are written to provide liability coverage as excess coverage over your home and auto policies and as additional coverage for certain situations. An umbrella policy would provide legal defense for lawsuits involving slander, libel and invasion of privacy that may not be covered under your homeowner policy. You may be required to carry a certain limit on your home and auto liability in order to qualify for an umbrella. 

LET’S SAY your teenage driver loses control of the vehicle and sends 4 passengers to the hospital by helicopter. Your auto policy is responsible and you have bodily injury limits of $500,000 or less – you’ll be glad you have an umbrella policy to cover expenses exceeding your auto policy’s bodily injury limit.