Liability insurance is for everyone.
You don’t have to be a millionaire to be sued like one. The legal fees to defend yourself in a lawsuit can be financially crippling regardless of whether you’re ultimately found responsible or not. If found liable, you can’t predict what a judge or jury will award, but huge settlements are common especially when bodily injury is involved. In a serious accident the personal liability limits of an auto, home or renter policy may not be enough, which is why an umbrella policy is an important consideration.
What’s at risk? Your savings, your home, your future income, etc.
One reason given for purchased higher liability limits is, “I don’t have a lot of savings or other assets.” What this view fails to consider is your future income and earnings potential. If you think you’re struggling now to make ends meet, imagine what would happen if in addition to losing your savings and other assets that your wages were garnished. Regardless of your economic status, you have something to lose.
How can you improve your protection?
Increase the personal liability portions of your policies. Often the difference in premium is minimal compared to the additional protection you get. Here are some of the specific areas to consider.
- Optional Bodily Injury to Others - pays for damages to people injured or killed in an accident if you are legally responsible for the accident.
- Property Damage - pays for damages to someone else whose auto or other property is damaged in an accident if you are legally responsible.
- Medical Payments - pays for reasonable expenses for necessary medical and funeral services to yourself and your passengers incurred as the result of an auto accident.
Home, Condo or Renter Insurance
- Personal Liability – pays if you are found responsible for unintentional injuries to another person or damage to property.
- Medical Payments to Others - pays for claims and lawsuits as a result of someone getting hurt, and pays for the medical expenses incurred by that person
- Provides an extra layer of protection over and above your auto, home or other policies also referred to as excess liability. Covers lawsuits, settlements and jury awards. Available in increments ranging from $1 million to $10 million.
To discuss improving your personal liability coverage or if you have questions, please give us a call. We’re glad to explain and provide a premium comparison.