Umbrella policies protect you beyond all your other policies. Which means if you're liable in an auto accident and your auto policy is insufficient to cover the liability, the umbrella will pick up the difference up to the limits of the policy. They also cover you if your liable for something that falls outside your existing policies. I can't think of a good example. They're relatively cheap because most of your typical liabilities fall in your existing coverage.
If you don't have sufficient existing policies, you usually can't get an umbrella plan, or it will be very pricey. If you don't have significant assets, most insurance companies will not sell you an umbrella. They don't want to pay out a claim for 2 million to protect your assets, when your total assets are worth $2000.
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