Personal liability. It means you’re on the hook if you hurt someone or damage their property in an accident that’s found to be your fault, in or out of your home.
That means you may be responsible for damage to their property, their medical bills in case of bodily injuries, pain and suffering and lost wages; plus legal fees if there’s a lawsuit or the threat of one.
Basic homeowner’s insurance or renter’s insurance can protect you up to the limits of your policy. If an accident occurs, these policies protect you in the case of bodily injury to someone else, property damage resulting from your negligence and potential lawsuits. They don’t cover liability resulting from an auto accident (generally covered by your car insurance), injury or property damage caused intentionally by you or a family member, injuries sustained by you or a family member, business activities or claims related to your profession.
It’s a good idea to review your home or renter’s policy to understand what’s covered by your policy and the limits of that coverage.
If the policy limits don’t meet your needs (litigation can result in million-dollar-plus verdicts), you may want to consider additional coverage. One popular option for obtaining additional liability coverage is personal umbrella liability insurance.
Surprisingly inexpensive, umbrella policies provide an extra layer of protection reaching beyond the limits of your homeowner’s or renter’s insurance. $1 million through $5 million of coverage are common, but they can be written for any amount.
If you have assets that need to be protected, an umbrella policy is a really good idea
Questions? Want to explore your options? Give me a call at 303.922.1002 to discuss it.