Q: We’ve got “regular” homeowner’s insurance but think we might need extra. The problem is expense, since we can’t afford to up the existing premiums. My husband thinks an umbrella policy is a good idea, but does it really do the trick? — Henrietta Homeowner

A: Dear Mrs. Homeowner: Let’s first make sure everyone understands the “umbrella” term. Just as the name implies, an umbrella policy covers your existing policy, just as an umbrella covers you from raindrops. Once the liability coverage on the homeowner’s policy is depleted, the umbrella kicks in. Let’s say a visitor falls down your rickety steps and breaks both legs. Because you should have repaired the steps (or, at the very least, posted a big warning sign) and didn’t, Victor Victim can sue your pants off for negligence.

Further, let’s say your net worth is more than the liability insurance you carry, but Victor could care less if he wallops you into the poorhouse.

Just to ensure the sheriff doesn’t come knocking on your door, an umbrella policy could be your salvation. Frankly, this type of coverage provides huge peace of mind for a relatively small sum. Typically, a million dollar policy costs only about $300 per year. Try to purchase enough at least equal to your net worth or, even better, twice that much for better protection.

While I hate to say it, some folks and their lawyers are pretty sleazy and greedily sue for a lot more than one or two times an individual’s net worth. It’s always better to avoid being underinsured so Sam Sleazeball won’t go after your assets, such as house, car, and so forth. For more information, check out http://personalinsure.about.com.

Tax Tip: Before 2008, taxpayers who didn’t itemize were unable to deduct property taxes. The Catch-22 was that the folks who owed no mortgage (lucky dogs) didn’t have the collected interest one needs to be able to itemize; therefore, they couldn’t deduct the property taxes. Now, however, people who can’t itemize can deduct these 2008 taxes up to $500 on a single return or $1,000 on a joint return.

Ellen Phillips is a retired English teacher who has written two consumer-oriented books. Her Consumer Watch column appears on Saturdays in the Business section of the paper. An expanded version is at www.timesfreepress.com under Local Business. E-mail her at consumerwatch@timesfreepress.com