Final answer:
The coverages provided by a personal umbrella policy that are broader than the coverages provided by an underlying policy are called drop-down coverages.
Step-by-step explanation:
The coverages provided by a personal umbrella policy that are broader than the coverages provided by an underlying policy are called drop-down coverages.
A personal umbrella policy is an extra liability insurance policy that provides coverage beyond what is provided by other underlying policies, such as auto or homeowners insurance. If the coverages under the underlying policy are exhausted or do not apply, the drop-down coverages of the personal umbrella policy kick in to provide additional coverage.
For example, if you have a personal umbrella policy with drop-down coverages of $1 million and your auto insurance policy only covers up to $500,000 in liability, the personal umbrella policy will cover the additional $500,000 if you are involved in a covered accident and held liable for damages.