What is an umbrella policy and do i need one?

An Umbrella policy does exactly what it sounds like it does. It sits ‘over and above’ multiple underlying policies. Umbrella coverage comes into play when your underlying liability limits (such as from a homeowners or auto insurance policy) have been reached and exhausted. Umbrella Policy limits (the dollar amount your policy will pay) are usually written in increments of one million dollars. Commercial Umbrella policies may also be purchased if you own a business.