Final answer:
Umbrella policies add extra protection to your home and automobile insurance by providing additional coverage beyond the limits of your existing policies.
Step-by-step explanation:
The type of insurance policies that add extra protection to your home and automobile insurance are called Umbrella policies.
Umbrella policies are a good buy because they provide additional coverage beyond the limits of your existing home and auto insurance policies. They can protect you against major claims that exceed the liability limits of those policies.
For example, if you were involved in a car accident where you were at fault and the damages exceeded the liability coverage of your auto insurance, an umbrella policy would kick in to cover the remaining amount, up to the policy limit.