An umbrella insurance policy is a policy that covers liability in excess of your other policies. For example, if someone wins a lawsuit against you because of a car accident and you owe more than your auto insurance policy pays, your umbrella policy will cover the difference.
If you rent an apartment, house or condominium, you need renters insurance. Although your landlord may have a property insurance policy, it will only cover your home’s external structure in most cases. Renters insurance will cover the contents of your home when damage occurs.