What benefit does an umbrella policy generally include beyond standard policies?

An umbrella policy is designed to provide additional liability coverage above and beyond what standard insurance policies typically cover. This includes protection against claims like slander and libel, which are not usually included in most standard homeowners or auto insurance policies. This type of policy serves to extend coverage for personal liability, allowing individuals to manage their risk against claims that can arise from various situations, including those that involve reputational harm.

While standard policies typically cover property damage and certain liability risks, they often fall short in cases of personal injury involving defamation, making umbrella policies highly beneficial for individuals seeking broader protection. The other options focus on more narrow aspects of coverage, which do not capture the extensive risk management that umbrella policies offer.