Falcigno Group, LLC

Typically, an Umbrella policy is pure liability coverage over and above the coverage afforded by underlying policies, and is sold in increments of one million dollars. The term "umbrella" is used because it covers liability claims from all policies underneath it, such as autos and homeowners policies.  Umbrella policies are mainly used by those who have sizable unencumbered assets, such as a home with a large amount of equity to ensure that even a catastrophic claim will not allow those assets to be placed at risk.  Umbrella insurance provides broad insurance beyond traditional home and auto. It also may provide additional liability coverage for claims otherwise not covered by underlying policies.