Insurance is a complicated thing. You need one type to make sure you're not bankrupted when your car gets demolished after an accident, another type to make sure you have your prescription medicines when you get sick, a third to make sure your family can make ends meet if you die, and yet another to protect the investment you made in your home. Even with all these types of insurance working together, some situations can still slip through the cracks. That's where umbrella insurance comes in.

An umbrella policy is a type of liability insurance, which means it protects whoever is named in the policy from lawsuits and other claims against them made by other parties. Liability insurance can be purchased by private individuals who might face the risk of being responsible for damages caused in a car accident or for injuries guests receive in their home. Umbrella policies might also be bought by a company which then faces the possibility that is products might fail and subject their company to lawsuits. Go here for more information on

An umbrella policy isn't a substitute for personal auto insurance or company liability insurance - or any kind of insurance, for that matter. You will still need to protect your London real estate and other assets the old fashioned way. What an umbrella policy does is extend the limits of that insurance so that you won't be caught lacking. For example, if your car insurance will only cover damages you cause up to $100,000 - leaving you responsible for any damages above that - buying an umbrella policy will increase the amount the insurance company will pay.

Umbrella insurance is sold by most insurance companies in increments of 1 million dollars. Buying a million dollar umbrella policy will increase the coverage amount of all your other insurance policies by a million dollars. If you own several paintings that you want to ensure are protected, you can continue purchasing million dollar increments until you are satisfied. The cost of an umbrella policy will vary from company to company and also depend on you and how much risk you post to your insurer.

In addition to protecting you beyond the original dollar cap of your individual insurance policies, umbrella insurance can also cover you in situations where your regular rental insurance would not. Some examples of extra umbrella coverage include situations involving libel, slander, invasion of privacy, false arrest, and vandalism, as it is meant to be a sort of all-encompassing protective insurance policy. However, check with your insurer to be certain what exactly your policy will cover so you will not be caught by surprise in a bad situation.

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