Unfortunately, these days anyone can be sued. And, million dollar judgments, once a rarity, have become all too common. Even if the court decides in your favor, you may still have to pay legal fees and court costs.

Personal umbrella plans take over where your basic automobile and homeowners policies leave off. How does a personal umbrella policy work? It's simple. Suppose someone is seriously injured on your property and wins a $750,000 lawsuit against you. Your primary insurance policy would cover the damages, but only up to the policy's maximum limits. Say that limit is $300,000. That leaves you with a hefty sum to pay out of your own pocket. A personal umbrella policy could cover the remaining $450,000. Definitely worth considering.