What overall purpose does an Umbrella insurance policy serve?

An Umbrella insurance policy serves to provide additional liability coverage above and beyond the limits of primary policies, like homeowners and auto insurance. While these primary policies have specified coverage and limit exclusions, an Umbrella policy offers a broader range of protection. It can cover certain liabilities that may not be included in standard policies, such as slander, libel, or certain lawsuits. This means that if a claim arises that is not specifically covered by the primary policy, the Umbrella policy can step in to provide the needed coverage, effectively filling gaps in protection and enhancing overall security.

In contrast, other options suggest functionalities that don’t align with the primary role of an Umbrella policy. Simplifying the claims process, reducing deductibles, or guaranteeing coverage for all property types do not capture the essence of what Umbrella policies are designed to do, which is primarily to augment liability coverage.