No, an umbrella insurance is not a policy you take out to insure your umbrella. After all, there is no need for anyone to insure an umbrella unless this umbrella is made of gold or is studded with precious stones. Umbrella insurance refers to the coverage of more than one property. For example, if you have a house and a car, the wisest course of action is to insure both at a discount rather than take out separate policies that would only end up costing more. But why umbrella? Why not call this type of policy a ceiling or a shield? This section explains the nature of umbrella insurance, its coverage, and other concerns such as liability, filing of claims, and the like.