# Umbrella Policy

*Insurance — Finicade finance glossary*

An umbrella policy adds liability cover on top of your auto and home policies, in million-dollar increments and at a strikingly low price.

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.

**Also known as:** excess liability insurance, personal umbrella

**Related terms:** [Liability Coverage](https://finicade.com/glossary/liability-coverage), [Policy Limit](https://finicade.com/glossary/policy-limit), [Auto Insurance](https://finicade.com/glossary/auto-insurance), [Homeowners Insurance](https://finicade.com/glossary/homeowners-insurance), [Insurance Premium](https://finicade.com/glossary/insurance-premium)

Source: https://finicade.com/glossary/umbrella-policy