Guest Author - Cate Brizzell

Insurance is one of those things you don't like to think about. Not because insurance is bad, but because the circumstances that precipitate a payout are worst case scenarios: death, disability, fire, catastrophic illness.

But in today's litigious society, it's not all that unreasonable to think that you--and your assets--could be the target of a major lawsuit at some point in the future. Maybe your dog bites a neighbor's child. Perhaps a visitor to your home slips and falls on your icy front stoop, injuring their back and becoming disabled. The parents of teenage drivers that cause car crashes resulting in death or injury are often sued by the injured parties.

The above scenarios can result in years of expensive litigation, not to mention fear and worry that a judgment could take away many of the hard-earned assets you've worked for. Will you have to sell your home? What about stocks and bonds that aren't protected in a retirement account?

An inexpensive way to protect yourself against litigation and expensive judgements is to purchase a personal umbrella liability policy. One million dollars in liability coverage can typically be had for $150 to $300 a year. Each incremental million dollars in a bit less expensive.

We found that our insurance company would only underwrite one million the first year. After that, we were able to purchase additional personal liability coverage if we so desired.

You'll probably have to meet certain liability limits on your auto and homeowners insurance before you can purchase a personal umbrella liability policy, but chances are you already meet those limits or are reasonably close.

Also keep in mind that if you own a business that you operate out of the home, you may need to purchase additional business umbrella liability insurance. A personal umbrella liability policy will not cover activities related to your business.

When done right, personal umbrella liability insurance can save you a lot of heartache, stress, worry and money if the unfortunate should occur. At the very least, it'll help you sleep better at night. For the sake of your future and the ones you love, regularly review all your insurance coverages, research your options, and work with a reputable insurance agent that you know and trust.