What type of coverage is usually associated with an umbrella insurance policy?

Umbrella insurance policies are designed to provide additional liability coverage that goes beyond the limits of other existing liability policies, such as homeowners or auto insurance. This means that if a covered claim exceeds the liability limits of those policies, the umbrella policy will kick in to cover the additional costs.

This type of coverage is especially valuable for individuals who may be exposed to increased risks of liability, such as those with significant assets to protect or those who engage in activities that could result in lawsuits. By offering a layer of protection above standard liability limits, umbrella insurance helps ensure that policyholders have adequate financial resources in the event of serious claims, thereby safeguarding their personal assets from potential lawsuits or damages.

The other options do not accurately describe the primary purpose of umbrella insurance: they either focus on specific types of coverage, such as property damage or health insurance, or limit the scope to specific liabilities, which umbrella insurance is not restricted to. Thus, the correct choice reflects the comprehensive nature of the coverage provided by umbrella policies.