Umbrella Liability Insurance

A client has the following insurance coverage:

  • Auto liability: $500,000
  • Homeowners liability: $500,000
  • Personal umbrella liability: $2,000,000

If the client is found legally liable for an automobile accident resulting in a $1,800,000 judgment, assuming no policy exclusions apply, approximately how much of the judgment would the umbrella policy cover?

  1. $500,000
  2. $1,300,000
  3. $1,800,000
  4. $2,000,000