Mississippi Property & Casualty Practice Exam 2026 – Comprehensive Prep Guide

An umbrella policy serves as additional liability insurance that goes beyond the coverage limits of your primary insurance policies, such as homeowners, auto, or boat insurance. Its primary purpose is to help protect your assets in the event that you encounter a serious liability claim or lawsuit that exceeds the limits of your underlying policies. This additional layer of protection is particularly beneficial in today’s litigious society, where lawsuits can result in substantial financial judgments against individuals.

Umbrella policies typically cover not only the amounts that exceed the limits of other liability policies but may also provide coverage for certain claims that other policies might not, such as defamation or slander. This feature makes it a critical component of a broader risk management strategy for individuals and families who want comprehensive protection against unexpected legal liabilities.