If a policyholder or household member accidentally injures someone or damages their property, liability insurance can protect assets. Sometimes known as third-party coverage, liability insurance will pay for property and medical claims as well as the cost of legal defense up to the policy limit. Customers can buy personal liability coverage from an Insurance Agency in Rancho Cucamonga CA as a component of a package or as a separate entity. While no one wants to be sued, a personal liability insurance policy can protect the family and its future.
Why is Personal Liability Coverage Important?
Most areas require drivers to have a minimum amount of liability insurance, and standard home-owners’ policies offer up to $300,000 in coverage. Buyers can get additional coverage under such a policy, but the amount may be limited. The policyholder will be required to pay for everything beyond the coverage limit of an auto, renter’s or home-owner’s policy if they do not have personal umbrella coverage.
How Does the Coverage Work?
Personal liability coverage is intended to take over where basic liability insurance leaves off. Once the limit of a primary policy is exceeded, the umbrella policy will cover everything else up to its limit. Umbrella liability policies typically have a high deductible, and an insurer will typically require the policyholder to have an amount of primary coverage equal to that deductible.
When Should a Customer Get This Coverage?
There’s no better time than now to buy additional liability coverage. Anyone can be sued, but some events greatly increase a person’s exposure to liability, such as having a teenage driver or starting a home business. Therefore, major life events may warrant a re-examination of liability coverage.
How Much Coverage is Enough?
There’s no definitive answer for determining the ideal level of personal liability coverage. Some believe that they only need enough insurance to protect their assets, but a large verdict could deplete those assets and leave a policyholder’s future earnings at risk. If a family frequently entertains, operates a business in the home, has teenage drivers, or takes frequent car trips, they may need additional liability coverage from an Insurance Agency in Rancho Cucamonga CA. Call or visit Barranca Insurance Services Inc. to speak to an agent who can recommend the right level of coverage.
