Personal liability insurance is what is known as "umbrella" coverage. It is in addition to your homeowners and car insurance policies, and provides another layer of protection for you, your family, and your nest egg.

Personal liability insurance can protect you from frivolous lawsuits, court judgments and other liability claims, whose losses may not be adequately covered by your other policies. It can protect you when you travel. Personal liability insurance can provide $1 million or more in coverage and give you security against the unexpected.

Do you need it? You may not, depending on how many assets you have. But then again, you may. Sometimes an unexpected thundercloud appears in all our lives, in which case it helps to carry an umbrella.

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