Outline what an "umbrella policy" provides.

An umbrella policy is designed to provide additional liability coverage that extends beyond the limits of an insured's underlying policies, such as homeowners, auto, or boat insurance. This means that if a liability claim exceeds the coverage limits of those primary policies, the umbrella policy can step in to cover the additional amounts up to its own limits. This type of policy is beneficial because it offers a broader level of protection against significant claims and lawsuits that could otherwise lead to substantial out-of-pocket expenses for the policyholder.

Umbrella policies are not intended to be the primary coverage for all claims, nor do they serve as minimum legal liability coverage required by law. Additionally, they typically cover a wide range of liability claims, not just property damage, making them a comprehensive risk management tool for individuals and businesses looking to protect their assets.