What does an umbrella policy typically provide that standard policies don't?

An umbrella policy is designed to provide additional liability coverage beyond the limits of standard insurance policies, such as auto or homeowners insurance. This type of policy typically features higher coverage limits, which means it can offer substantial financial protection in the event of major claims or lawsuits.

In addition to higher limits, an umbrella policy often provides broader protection by covering a wider range of potential liabilities that might not be included in standard policies. This can encompass personal injury claims, defamation, and even situations involving rental properties or claims related to activities outside of typical coverage. As a result, individuals or businesses with an umbrella policy can have a greater peace of mind, knowing they have an extra layer of protection against significant financial losses that could exceed the primary policy limits.

The other options suggest features that do not accurately reflect the primary purpose of an umbrella policy, which focuses on enhancing overall liability coverage rather than reducing costs or limiting the types of claims that can be made.