How Personal Liability Insurance Covers Your AssetsFebruary 21, 2011 - Author: monty
This form of insurance acts as an umbrella to shelter your from damages that exhaust the limits of any other coverage that you may have. Your homeowner’s insurance or auto insurance may not cover all of the costs that are associated with a catastrophic event. Having an umbrella policy in place help to ensure that you are able to cover any legal expenses or judgments that exceed what you other insurance will pay for.
There are two major factors that help to determine the necessary coverage limits when you are considering purchasing personal liability insurance. The first is the amount of assets that you have to protect. Essentially, the more valuables that you have to shelter, the higher the limits that you will need. The second point of consideration is the level of risk that your lifestyle and life choices come with. For those that experience exceptionally high levels of financial security, there is always the risk that they will be perceived as being an easy target for a frivolous lawsuits.
Speaking with an agent or broker regarding your current financial circumstances and other lifestyle factors that may put you at a greater risk for frivolous lawsuits can help you garner the best understanding of your personal liability insurance needs. Most agents and brokers work in close affiliation with well rated insurers, which may allow you an inside view of some of the best savings opportunities. If you currently work with a financial advisor he or she is likely also qualified to make coverage recommendations as well.
As with all coverage types, comparison shopping is key to getting a cost-effective and comprehensive policy that represents your total needs. Additionally, you can speak with a current insurer about any savings or customer loyalty rewards that may be associated with adding an umbrella policy. With time, establishing yourself as a low risk client can also qualify you for additional discounts with some insurers.
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