Umbrella liability insurance does what its name says. Well, maybe not exactly what it says. It won't guarantee you'll stay dry every time you walk in the rain, but it will provide an umbrella of personal liability protection so you're always covered.

Umbrella insurance kicks in after your primary homeowners or auto insurance pays a claim up to your insurance limit. (Most primary insurance has a personal injury protection component that usually pays for the first $100,000 or so of costs.)

For example, say you're responsible for an injury in your home that causes $150,000 of medical care. Your primary homeowners insurance will pay the first $100,000. You're responsible for the rest which is where an umbrella insurance policy comes in. For a few hundred dollars a year, you can get a million dollars of coverage (or more) that will kick in if you need it.

Not everyone needs an umbrella policy, but you may be surprised at how many people should have one. We recommend you get a policy if:

• You have substantial assets that could be seized by a court to pay off a judgment that exceeds your primary coverage.
• You rent out your home or take part in a vacation exchange program with other travelers.
• You're a business owner. Whether you own a multimillion-dollar company, or you're an Amway dealer or Avon sales rep., make sure you're covered.
• You let people "house sit" for you when you're away from home.
• You have a cleaning person, nanny, gardener or other worker who is not licensed or bonded.

If you fall into any of these categories, we urge you to call your insurance companies and get quotes for an umbrella liability insurance policy. The price is so cheap that it's well worth the money. It just doesn't make sense to take extra risks when safety can be obtained at such a small price.

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