The Umbrella Policy is often misunderstood. In essence, the critical coverage component is one of the most important coverages to secure. The Umbrella Liability Policy protects the insured family against “Third Party Lawsuits” against them. The liability coverage is intended to insure over and above (in excess) of the primary liability coverage afforded under a Home, Auto or Boat policy (or any other primary coverage provided under a separate policy). In addition, this valuable protection is a great value, the approximate cost for a home and two autos is under $250 per year.