Umbrella insurance is a bigger, more robust policy that offers an umbrella, or blanket, coverage for liability risks. It may help to protect your assets and savings, according to Nerd Wallet. Let’s say the family of your child’s friend decides to sue you for creating an unsafe environment that led to the child’s injury, they claim. Typically, your standard home insurance’s liability coverage may cover some of those initial costs. Yet, in a claim like this, the losses could be much more significant.

Umbrella insurance provides extra support for liability claims made against you at home and often with your car insurance as well. If you are found at fault for the damages another person sustains, and your other policies are not enough to cover those losses, this policy could help you. You can choose the level of coverage you desire for this type of policy, providing you with more protection based on your risks. While you may be focused on reducing home insurance costs, there are some times when adding to your policy may make sense.