You may also want to compare prices on umbrella policies when you get other types of insurance. Umbrella insurance gives you extra liability coverage that exceeds your homeowners, car, or boat policy. Once the liability limits on those policies have been hit, your umbrella policy will be activated. These policies will cover liability related coverage for situations like: Rental units, accusation of libel or slander, and false arrest. The umbrella policy will fill gaps in your existing policies.