Umbrella Policy
Also called: excess liability insurance, personal umbrella
An umbrella policy adds liability cover on top of your auto and home policies, usually in million-dollar increments and at a strikingly low price — often a few hundred dollars a year. It's cheap because it sits above limits that are rarely breached, which is exactly the profile of catastrophe cover worth buying. For anyone with assets, a teenage driver, a pool or a rental property, it's the highest value per dollar in personal insurance.