An umbrella policy extends the liability limits on your underlying policies, such as your homeowners' and auto policies, providing additional coverage beyond what those policies offer. It does not cover deductibles or co-insurance payments, and it does not typically extend the number of covered perils.

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An Umbrella Policy

Question 63

Multiple Choice

An umbrella policy

A) will cover the deductible and the co-insurance payment on only your homeowners' policy.
B) will cover the deductible and the co-insurance payment on both your homeowners' policy and your auto policy.
C) will extend the liability limits on your homeowners' policy and your auto policy.
D) will extend the number of covered perils while leaving the liability limits on your auto and homeowners' policies unchanged.

Correct Answer: