What is an umbrella policy?

An umbrella policy is a type of insurance coverage in North Carolina that provides additional liability protection over and above the liability limits of the primary policies. It is intended to protect policyholders from potentially costly liability claims and lawsuits for which they may be found legally responsible. An umbrella policy in North Carolina generally provides coverage for claimed damages or injuries that exceed the limits of the primary liability insurance. For instance, if a person causes a car accident in North Carolina and the damages exceed the limits of their auto liability insurance, the umbrella policy may provide coverage for the additional costs. An umbrella policy can also provide additional coverage for claims involving libel, slander, or other personal injury claims not normally covered by a primary policy. It can also provide coverage for judgments that are not covered by liability insurance due to exclusions. In North Carolina, an umbrella policy can be purchased in combination with auto and/or home insurance policies for a single premium. The premium for an umbrella policy in North Carolina is based on the existing coverage limits for the underlying policies and the amount of additional coverage desired.

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What is an umbrella policy?

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