An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

Courtesy the Insurance Information Institute

Air bags, however, can be dangerous. If small children sit unbelted in the front seat, they can be catapulted into the path of a deploying air bag, which inflates with great force. This risk also applies to small adults—who must sit close to the steering wheel in order to reach the pedals—pregnant women and the elderly. Infants in rear-facing safety seats on the passenger side can be severely injured because their heads are in the direct path of an inflating air bag. If your airbag is stolen or it deploys, you must get a new one, but you will be reimbursed under the comprehensive portion of your auto insurance policy.

Children and Air Bags – Video
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Preventing air bag injuries

Drivers should have all children sit in the backseat wearing a safety belt. Infants should be placed in rear-facing car seats and put in the backseat. Small adults should move the seat back so that their breastbone is at least 10 inches from the air bag cover.

If this is not possible, air bag switches can be installed so that the vehicle owner has the option of turning the bag off or on, depending on the situation. In January 1998, NHTSA allowed auto dealers and repair shops to begin installing air bag cut-off switches. Before the switch can be installed, vehicle owners must complete a four-step process:

1. Obtain an information brochure and request form from NHTSA, dealerships or repair shops
2. Return the form to NHTSA
3. Receive authorization from NHTSA after it reviews the case
4. Take the vehicle to the service shop along with the authorization from NHTSA which certifies that the owner has read the brochure and met one of the four eligibility classifications:
5. rear-facing infant seat can be in the front (necessary if the vehicle has no back-seat)
6. driver’s seat cannot be adjusted to keep more than 10 inches between the driver and the steering wheel
7. putting a child 12 or under in the front seat can not be avoided
   having a medical condition that puts them at risk of injury when an air bag deploys.

Courtesy the Insurance Information Institute