Personal Liability Insurance
Personal liability insurance protects your assets if you’re sued for property damage or injury to others. It’s included in home or renters insurance. Accidents while operating a car or boat are rarely covered. A home business may not be covered either. This insurance protects your current and future assets. It’s available through your homeowners or renters insurance.
Umbrella Policy
If your homeowners personal liability coverage maxes out at $300,000 and you have a personal liability umbrella policy for $1 million, you’re covered for $1.3 million. For example, if you’re sued for $800,000 and lose, both policies would pay towards the claim.
Overview of Personal Liability Insurance
Personal liability insurance costs $8-$10 per year for every $100,000 in coverage. Most homeowners policies offer $100,000 to $500,000 in coverage. You can get up to $1 million. Factors affecting cost include coverage type and amount.
Personal liability insurance covers you if accused of risking others’ health or property through misfortune or neglect. It protects you if responsible for others’ injury or property damage, paying legal defense and damages costs. Key takeaways – it’s a safety net if liable for bodily injury or property damage. Understanding coverage and claims is significant. Coverage is protection amount; claims are cash paid when sued. Limits protect from unlimited liability.