Umbrella liability insurance can be a savvy, inexpensive investment against a high-cost lawsuit. Enough insurance already, right?  Why shell out for umbrella liability insurance, especially in an economic crunch when every little payment stings more than usual?

It may make sense, especially if you have significant assets. Experts call this umbrella a savvy, inexpensive investment against a high-cost lawsuit that could result from anything from a car wreck to your job to to a neighbor's fall on your front steps.

Umbrella liability insurance is so dubbed because it acts like an umbrella, poised above your auto and homeowners liability policies to provide extra protection.  It kicks in when the liability limit is reached on the underlying coverage, paying for judgments against you as well as attorneys' fees, all up to a stated limit.

Say you have $300,000 in liability insurance on your homeowners and auto policies and disaster strikes: A tree on your property falls and crushes your neighbor's home or your teenager rear-ends a car, severely injuring or even killing someone.

If you are sued and a settlement or court judgment finds you liable for $500,000 or $1 million or more, the umbrella takes care of the difference.

As insurance tabs go, this one is not steep.  A typical $1 million personal umbrella liability policy might cost $150 to $200 annually, with each additional $1 million in coverage going for $50 to $75 more.

Umbrella policies used to be viewed as something needed only by the wealthy or for those with substantial net worth -- perhaps $500,000 or more -- or those in professions that might make them targets of lawsuits, such as physicians, lawyers, financial planners or teachers.  But in today's litigious society it should be considered by everyone.

While the odds of a huge judgment against any particular individual are very low, the amount could be devastating.  The Pennsylvania-based research firm Jury Verdict Research says the average verdict in U.S. personal injury cases from 2000 - 2006 was $928,151 and the average award from personal negligence lawsuits exceeded $1.4 million.  The average total payout in cases where the umbrella came into play last year was $270,000.

People who don't have any (umbrella liability insurance) should have some, and people who have some probably need more.  People are opportunistic with lawsuits.

While the majority of claims filed under umbrella liability policies are from car accidents, most umbrellas also protect against lawsuit awards for libel, slander, defamation of character, invasion of privacy and other claims.  President Bill Clinton was able to pay his legal bills in the Paula Jones sexual harassment case with help from an umbrella liability policy.

Umbrella coverage is not necessarily for everybody, but it is not a bad risk transfer tool.  It provides the client with peace of mind they would not have otherwise.

Often an umbrella policy is much more inexpensive when the deductibles on your homeowners and auto policies are increased