A survey conducted for insurer Fireman's Fund found that 67% of homeowners feared personal lawsuits in their lifetimes. It is suggested that homeowners obtain a personal umbrella-liability insurance policy, which might cost $200 to $400 a year for $1 million of coverage. These policies provide extra protection, over and above the liability limits on home and auto policies.
"That's the first line of defense," says David Handler, an attorney with Kirkland & Ellis in Chicago. "It's the insurance company's attorneys who are going to court. They're the ones with the first dollars on the hook."
This article appeared in its entirety in the October 17, 2007 edition of The Wall Street Journal.