What is the minimum amount of additional coverage provided by umbrella policies?

What is the minimum amount of additional coverage provided by umbrella policies?

• A. 1 million
• B. 5 million
• C. 500 thousand
• D. 2 million

Answer: (A)

Umbrella liability adds extra liability protection on top of your underlying policies, kicking in once those policy limits are exhausted. A common starting point for this additional coverage is 1,000,000 dollars. So the minimum amount provided by an umbrella policy is one million. It’s designed to extend and broaden protection beyond what your auto, home, or other liability policies cover, including defense costs and sometimes claims those policies wouldn’t cover. The other amounts are either below the typical starting minimum or are simply higher levels of protection, not the standard minimum.

Umbrella liability adds extra liability protection on top of your underlying policies, kicking in once those policy limits are exhausted. A common starting point for this additional coverage is 1,000,000 dollars. So the minimum amount provided by an umbrella policy is one million. It’s designed to extend and broaden protection beyond what your auto, home, or other liability policies cover, including defense costs and sometimes claims those policies wouldn’t cover. The other amounts are either below the typical starting minimum or are simply higher levels of protection, not the standard minimum.