Are umbrella policies really necessary?

[Lois S.]

A friend who is an extremely successful RE investor tells us that umbrella policies aren't necessary, based on his experience. Advises if you want more liability coverage, just add it to the LL insurance policy.  A million dollar liability coverage should be sufficient for single-family & MF up to 8 units, at least.

His experience is that any claims against his company have been frivolous & insurance co. settled or delayed until tenant just walked away. And million-dollar claims are rare.

So, would any big investors care to weigh in on this?

Thanks