The high cost of medical treatment and automobiles are enough to make one stop and think about how much a bad accident could run. Would your Auto Liability limits cover the total loss of a luxury car and serious injuries to its occupants? How about a drowning or permanent disability from an accident on your boat? You can imagine how quickly legal bills and restitution would eat up your Liability coverage in a lawsuit. Umbrella insurance operates in concert with your basic coverages to offer more protection for risks of bodily injury and property damage, along with coverage for other risks that your standard policies may not insure. It extends over your primary policies, including Homeowners insurance, Auto insurance, and Boat or Yacht insurance, and offers an extra layer of protection. So, if you have, for instance, a $300,000 Liability limit on your Auto policy, and purchase a $1 million Umbrella insurance policy, you would have $1.3 million in coverage.