What is an umbrella policy?

An umbrella policy is a type of insurance policy designed to provide additional coverage to existing policies. It is an extra layer of protection that covers liability claims that may exceed the limits of your primary policies. It is a policy designed to address any gaps in coverage that your primary policies may have. In Minnesota, an umbrella policy typically covers damages that exceed the limits of your primary policies, such as homeowners, auto, and other liability policies. It provides coverage for legal fees, settlements, judgments, and other costs associated with claims arising from accidental injury, property damage, and personal injury. Umbrella policies often cover liabilities that would be excluded from your primary policies. For example, most traditional policies do not cover libel, slander, invasion of privacy, false arrest, fear of bodily harm, and malicious prosecution. An umbrella policy can provide you with the extra coverage needed to protect you from these types of liabilities. An umbrella policy can provide additional financial security and peace of mind. It can be tailored to fit your unique needs and individual circumstances. It is recommended to consider an umbrella policy for added protection to help cover all potential liabilities.

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