In short, yes you do. Everyone should have umbrella insurance.
But what is an umbrella? An umbrella is a policy that lays over the top of your existing personal lines policies for additional liability coverage. This coverage comes in increments of $1M. So to make it easier to read, your have an auto and a home policy and you call your agent and ask for an umbrella on top. Here is what the agent should tell you.
The umbrella had minimum coverage on the home and auto, the home should have $300k and the auto should have 250/500/250. Then on top of that we will add your umbrella. For a $1M umbrella, it is usually around $25-$30 for a basic policy per month. They are very affordable.
Now the next question I get asked is, what is an umbrella policy for. This is a very good question. To answer this I am going to give you an example.
Your son, daughter and their best friend are driving to a party after a football game. The son is driving and on skids on a sharp corner on a gravel back road. The car rolls and lands in the living room of a farmhouse.
This sounds like a claim nightmare! However, you have an umbrella policy, congratulations, your insurance company's lawyers may be able to settle with the farm house owner on the loss of their home without dragging you through hell.
Need more examples, well I am full of them, message, email or start a new forum and let's talk.