The umbrella policy is there to fill the gaps in other insurance policies. Where one policy does not cover, the umbrella policy picks up where it doesn’t cover. The umbrella policy covers all insurances such as house, car, etc. The umbrella policy covers in increments of 1,000,000 dollars. So if you had car insurance that only covered 200,000 dollars, the coverage would then be 1,200,000 dollars. The same goes for home owners insurance, if you had 500,000 dollars in coverage the total coverage would become 1,500,000 dollars in coverage.