While no one is required to have umbrella insurance, it is always a good idea to provide additional coverage for you and your family. If you and your family are underinsured and are subject to a large claim, it can cause a financial calamity. In order to make up for this, you may have to take money out of your 401k account, sell a home, or get a second job.
If you have umbrella insurance, this can provide a backstop to make sure that you receive adequate compensation or adequate coverage after a car accident or homeowners claim. Umbrella Insurance is a single policy that covers most aspects of your financial life.