Why You Need Personal Liability Insurance

Need Personal Liability Insurance

Determine who needs personal liability insurance and how much to own.

Personal liability insurance protects your assets by paying claims and damages in case you injure other people or property. Within your auto, renters/homeowners insurance policies, you will have some liability coverage. Typically, the liability in these policies is very limited. An umbrella policy is a separate policy that provides personal liability cover.

Today, lawsuits are everywhere. What if your dog bites a neighbor? What would happen if someone slips and falls on your property? You may not be able to avoid all accidents, but you can transfer some of the financial risk of the resulting loss to an insurance company by buying personal liability insurance. Umbrella policies provide extra coverage from $1 million and up. While you may think that this is too much coverage, keep in mind that the average lawsuit costs hundreds of thousands of dollars.

If you have homeowners or an auto insurance policy, you will have basic personal liability coverage. These policies will protect you against many liability claims. Your insurance company will defend or settle claims and lawsuits against you, and they will pay the sum owed for covered damages – up to the liability limits of the policy. Once you have reached the limits on your homeowners or auto insurance policy, the rest of the expenses are left for you. For example, if your homeowners insurance policy covers $500,000 of the expenses but the total cost comes to $750,000, the remaining $250,000 will need to be paid by you. In one small accident, your entire savings is depleted.

There are many reasons in which you should have personal liability insurance. Here are just a few of the circumstances where a policy would be wise to secure.

  • If you have young children and they have their friends around to play at the house often.
  • If you have guests in your home often.
  • If you have bad driving habits.
  • If you have firearms on your premises.
  • If you have gardeners and housekeepers on the grounds.

As an umbrella policy is so affordable, it is worth protecting your finances and investments now.

Are you ready to secure your umbrella policy? Visit the professionals at Mayer Insurance, located in Apple Valley, Minnesota.