Umbrella coverage expands your liability coverage on both your homeowners and your auto insurance. Generally, your liability coverage on your homeowners insurance is $100,000 to $500,000. On your automobile insurance, it depends on the limits you select; most experts suggest you carry $100,000 to $300,000 of bodily injury liability. Umbrella liability insurance can expand your coverage by up to $10 million should you be sued. You may also need to increase your homeowners or automobile coverage in order to qualify for an umbrella policy.