Often called an 'umbrella' policy because it is carried over all other liability insurance and is used for a catastrophic loss when primary liability insurance is exhausted. Homeowners and Auto insurance covers a maximum of $500,000 per occurrence. An 'umbrella' policy adds $1,000,000, $2,000,000 or $3,000,000 extra coverage to your personal liability and automobile liability policies. Coverage is provided for you, your spouse and any relatives living in your household and insured by your primary policies.

There are many factors to consider when calculating a premium: the state in which you live, the number of liability exposure you have (cars, drivers, boats) etc. Usually the best rates occur when the customer insures both auto and home with the same company as the umbrella. This is a requirement for many insurers offering umbrella coverage. The premium for this coverage starts at just $126.00 per year.