This is a common question, but no, you don’t! Even if you don’t have any assets, being held liable can lead to “wage garnishment” which means that you could be legally required to give a portion of your income to your creditor.   But, before you buy, remember that Umbrella Policies are meant to serve as back-up, picking up where your auto and homeowners insurance policies leave off, so make sure you have these in place first.   (And, because they’re designed to be met by your other policies first, know that Umbrella Policy deductibles are always high.)