Umbrella coverage is inexpensive. in the event someone were to sue you for more $$$ than either your homeowners or auto insurance covers, the judgement would land on you. which means they can garnish your wages, seize cars, your wife (just kidding), etc etc.

so.....in light of the fact that we live in a lawsuit happy country, it isn't a bad idea. personally, I think the answer is to take all of the lawyers out to the middle of the pacific ocean and knock a hole in the bottom of the boat....but that's just my opinion.