Does Oprah have an umbrella to protect her from a $1 trillion lawsuit?

Talk show host Oprah Winfrey is being sued for $1 trillion (yes, trillion with a T), according to the National Enquirer. Author Damon Lloyd Goffe of New York says Oprah put her name on his original work. I assume the asking price is so high because Oprah has very deep pockets and makes a prime target for someone seeking easy money — whether or not his claim is valid.

But 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.

I bet Oprah has personal umbrella coverage – but not $1 trillion worth. An umbrella policy for a typical homeowner is $1 million to $2 million.

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.

It’s worth looking into, especially in tough economic times when others may be looking for “alternative” sources of money.