If you drive a lot of the local kids around to ball practice, scout meetings or other gatherings, think about getting a Personal Umbrella Liability policy. You could have tremendous liability exposures if you should be involved in an accident – a sad fact, but true.
February 24, 2010
November 3, 2009
Liability Coverage on the Homeowners Policy
Perhaps the best value in insurance is the Personal Liability coverage provided by your Homeowners Insurance.
Liability claims are harder to grasp than property claims, after all property is tangible – I can see it, touch it, I know how much I paid for it. Liability claims occur far less frequently but are potentially much, much more costly.
So the question then becomes, “How much liability coverage do I need?” It is a question that unfortunately has no reeady answer. You need a liability coverage limit that will meet or exceed any possible judgement against you. In today’s litigious society, we would say that most people should have a liability coverage limit of at least $500,000.
The personal liability coverage discussed so far has applied to Bodily Injury and Property Damage claims against you. The kinds of claims people make in our modern world are not confined to Bodily Injury and Property Damage, though. It is highly recommended that you add Personal Injury Coverage to your policy. This endorsement expands the definition of liability to include coverage for claims alleging libel, slander, false arrest, malicious prosecution, etc. This coverage also is very reasonably priced.
If you have not done so in a while, check over your policy and make sure that the liability limit is adequate for you and that you have the Personal Injury Coverage endorsement.