The term "umbrella" is used to signify how this type of insurance shields the insured's assets more broadly than primary coverage.
Florida umbrella insurance is a liability insurance policy that protects the assets and future income of the policyholder. It goes above and beyond the standard limits on a primary policy and is distinguished from excess insurance in that excess coverage goes into effect only when all underlying policies are totally exhausted. A clear advantage of an umbrella policy for Florida residents is the coverage's ability to "drop down" and fill in the gaps in underlying policies.
An easy way to understand the benefits of umbrella insurance is by looking at your liabilities. For example, if you carry an auto insurance policy with liability limits of $500,000 and a homeowners insurance policy with a limit of $300,000, because an umbrella policy is pure liability coverage over and above the coverage afforded by the regular policy, with a million dollar umbrella your limits become in effect, $1,500,000 on an auto liability claim and $1,300,000 on a homeowners liability claim.
Florida umbrella insurance policies provide broad coverage beyond traditional home and auto. They provide additional liability coverage above the limits of your Florida homeowner's, Florida auto, and Florida boat insurance policies. Umbrella insurance can also provide coverage for claims that may be excluded by the primary policies like false arrest, libel, slander and invasion of privacy.