Umbrella insurance provides liability coverage beyond most property insurance policies. This includes coverage for damages caused by you and members of your household, as well as limited coverage in the event you're sued.
Umbrella insurance is a way to protect you in a worst-case scenario. Consider an insurance policy for a boat with liability coverage of $100,000. If a wrongful-death lawsuit leads to $1 million in damages, the other $900,000 would come from the policyholder's own pocket—unless they have a $1 million umbrella policy, which would cover the gap between the boat policy and the total damages due.