Normal short-term insurance policies have limitations to the amount of coverage included. Umbrella insurance offers additional cover to ensure that in the event of complete loss, you will have sufficient insurance to replace everything. This includes liability insurance too. Short-term insurance policies normally offer third party liability insurance. Since liability claims can exceed liability cover offered by your short-term policy, umbrella insurance will cover the excess. If, for instance, you accidentally hit a pedestrian with your car and they file a liability lawsuit for R5m against you, but your insurance only covers you for R2.5m, but your umbrella policy has a R10m liability benefit, the liability cover from your normal insurance will cover R2.5m and the umbrella policy will cover the outstanding R2.5m. Umbrella insurance policies can also offer liability coverage which is not always included in regular short-term insurance policies. These include, but are not limited to, false arrest, invasion of privacy, libel and slander.