Do you need to buy an umbrella policy if you have little assets?

[Ellie Narie]

I'm going to close on my first 4plex in a month with an FHA loan and 3.5% down. I don't have much assets, let's just say less than 50k in total (savings and stuff. Im young, so no retirement accounts yet). I've read on some posts that people who get an fha loan on a 4plex should consider getting something like a 1 mil umbrella policy. But is this really necessary if I don't have anywhere near that much assets to "lose"? The 4plex will probably appraise for more than I'm getting it for, so I guess that adds some extra equity... Should I just get the basic homeowners insurance?

[Cynthia Meyer]

An umbrella liability policy adds an extra layer of liability protection above your landlord insurance. Do you own your property in an LLC? FYI, your future income can be attached if there is a judgment against you, not just your current assets.