What happens if you are involved in a liability claim that exceeds your liability limits?
We at Hometown Insurance Center often hear this question: What happens if I am involved in a liability claim that exceeds my liability limits? We feel this is something that everyone should understand when purchasing insurance. If you are involved in a claim that exceeds your liability limit, the claimant has the right to file a lawsuit against you personally. This can lead to a bill to you for the remainder of the claim and/or an arrangement in which a portion of your wages are automatically deducted each pay period and paid to the claimant until the claim is paid off. For most of us, neither of these options is ideal! This is why Hometown Insurance Center recommends you carry Personal Umbrella Insurance.
Personal Umbrella Insurance protects your personal liability exposure above and beyond your current liability limits. You can list all personal lines policies under your umbrella (home, auto, boat, ATV, etc.). If a claim occurs on any of the listed policies, and the liability limit is exceeded, the umbrella coverage will kick in. Most commonly homeowners will purchase a $1,000,000 umbrella, but higher limits are available. The expense is minimal, but the benefit and peace of mind gained from purchasing Personal Umbrella Insurance is priceless.
Contact Hometown Insurance Center today and ask if you should have a Personal Umbrella Policy.