Does anyone know exactly what an umbrella policy is?

TIA

In reference to my car loan - it meant that I would have a big payment at the end of the loan.

ETA: you know what, I think I'm thinking of something else.......hmmmm.. sorry!

Not 100% sure but its and additional policy that extends your coverage to a million or even higher.

So your auto insurance may cover you up to 500K. But say, you got in an accident and got sued for a million dollars...this policy would cover you up to that million dollars and with this extra policy you won't lose your house, car etc. because your auto ins. doesn't cover the amount.

Its recommended for people who own car, house etc, that could be lost in the event of a large law suit.

Here is a better explanation:

http://personalinsure.about.com/cs/umbrella/a/aa110503a.htm

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Posted by Chloegirl

Here is a better explanation:

http://personalinsure.about.com/cs/umbrella/a/aa110503a.htm

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Thank you so much! Our ins. agent said we should get one because of the home we are buying and my DH is inheriting a business so she said it was wise to have but I did not understand what she was really talking about.

Thanks again