In a tough economy other people may be looking for “alternative” sources of money. This alternatives may be suing others.
The fact is that anyone can find themselves a target of an overblown lawsuit. If you have a house, cash or investments – heck, if you just have a job – you could be seen as a cash cow by someone else . . . someone who could “slip” on your sidewalk or “fall down” your steps.
There are affordable ways to protect yourself. Your home insurance provides liability protection up to certain amount (sometimes $300,000). But that’s not enough to protect your assets if someone gets greedy or can prove that they suffered a substantial injury that’s your fault. Personal umbrella coverage, which gives you liability insurance above and beyond your home and car insurance, is relatively inexpensive and is a vital part of fortifying your finances.
According to the Insurance Information Institute, you can buy a $1 million umbrella policy for about $150 to $300 a year. The next million will cost about $75, and about $50 for every million after that.
written by Constantine Njeru
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