Umbrella/Excess Liability Insurance:
The personal umbrella policy or excess liability has two important purposes. First, it provides additional liability coverage over and in addition to the basic coverage of your underlying limits (i.e.. Your liability coverage on your auto insurance policy or home policy). So, if a loss occurs which your auto or home insurance does not have enough money to cover the loss, the umbrella will supplement the additional amount.
Secondly, it covers some losses that are excluded by the underlying insurance policy. In some cases, there have been claims that have arisen which neither the home nor the auto insurance policy would cover the claim. In many of these circumstances, a personal umbrella policy will cover the loss.