Umbrella insurance

ACCIDENTS can happen, and when they do, the law says that people who were to blame must pay the victims' financial losses. You can protect yourself against such damage suits by buying an umbrella policy. This supplements the protection you already have against injury claims as a standard part of your homeowners and automobile insurance.

Anyone could benefit from this extra protection. A judgment against you could lay claim to your future income for many years.

Liability policies cover you for accidents you might cause or be responsible for. You usually can buy a $1 million policy for $200 a year. But, since the umbrella policy takes over where auto or homeowners insurance ends, insurers will issue it only if you already have substantial primary coverage.

The best contracts cover almost every kind of liability claim except those related to business activities. For example, they should protect you if you are sued for libel, slander or invasion of privacy, malicious prosecution, and wrongful eviction, defamation of character or discrimination. Some policies insure against bodily injury or property from your use of reasonable force to protect try. A good policy also pays for most of your legal icy should extend to everyone in your household who is related you by blood, marriage or adoption. That includes children away at school.