What does umbrella insurance actually cover for homeowners?

Umbrella insurance provides liability coverage beyond the limits of your standard homeowner's and auto policies. It kicks in when a claim exceeds those underlying policy limits, typically starting at one million dollars of additional coverage. For homeowners specifically, it covers situations where someone is injured on your property and sues you for more than your homeowner's liability limit, or if you're found legally responsible for significant property damage to others. It also covers things your homeowner's policy might exclude entirely, such as certain personal liability lawsuits, libel, slander, and false arrest claims. It generally does not cover your own injuries, damage to your own property, intentional acts, or business-related liabilities. It's essentially catastrophic liability protection for worst-case lawsuit scenarios.