Which of the following is typically a limitation of an Umbrella Policy?

An Umbrella Policy is designed to provide additional liability coverage beyond what standard policies offer, including personal auto and homeowners insurance. This type of policy typically involves coverage limits, and while it often starts at a million dollars, it can come with higher limits available for purchase. Therefore, the mention of a limitation to only $1 million reflects the common introductory level of coverage for such policies, making it an appropriate answer to the question.

It's important to recognize that the other options do not accurately capture the typical limitations of an Umbrella Policy. For example, stating that it covers all types of losses without limits is misleading, as Umbrella Policies are not limitless and they have specific exclusions. Similarly, while some Umbrella Policies may have a deductible, it may not necessarily be high, and not all policies require a deductible at all. Lastly, the notion that it is exclusively for property damage is incorrect, as Umbrella Policies encompass liability coverage that can protect against a broader range of situations, including personal injury, bodily injury, and other liabilities, not just property damage. Rather, an Umbrella Policy enhances existing coverage rather than being limited to specific types of damage.