As we quickly approach the holidays, many people start thinking about resolutions for the New Year. If making sure your assets are protected makes your list, it’s time to consider buying excess personal liability insurance.
Excess personal liability, also called umbrella insurance, adds a layer of protection above your existing homeowners and auto insurance coverage.
Personal liability coverage on home insurance varies, but most cover claims up to $300,000 or $500,000. Most automobile policies provide coverage up to $100,000 per person, $300,000 per accident for bodily injury and $100,000 for property damage.
Unfortunately, these days lawsuits are common. The more you own, the more vulnerable you are to legal judgments.
There is no way to predict the future. Entertaining groups of people at your home, having teen drivers, owning boats and other recreational vehicles, put you at added risk in the event there’s an accident.
Additionally, other types of liability claims, such as defamation of character and false arrest, are not generally covered by your home or auto policies.
Having excess liability insurance should cover the legal costs of defending yourself against any personal lawsuits, including the costs of clearing your reputation.
An umbrella insurance policy can be an important complement to your existing policies, giving you more peace of mind. Costs vary, but can be as little as $250 per year.
Everyone’s financial situation is unique, so work with an experienced professional to determine how much excess liability you need. A general rule of thumb is to buy excess liability insurance that at least equals your net worth.
For more guidance on umbrella insurance and how it can help protect your assets, contact a Chivaroli Premier Private Client Advisor.