What does a personal umbrella liability policy provide?

A personal umbrella liability policy provides an extra layer of liability protection above the limits of the insured's underlying policies, such as auto and homeowners. If a large liability claim exhausts the underlying policy's limit, the umbrella pays the excess up to its own (often substantial, e.g., $1 million or more) limit. Umbrellas may also cover some claims not covered by the underlying policies, subject to a self-insured retention. They typically require the insured to maintain specified minimum underlying limits. Understanding the umbrella's role as excess liability protection over primary policies is standard content on the casualty exam.