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How liability coverage can make or break your insurance policy

Frank Darras Founding Partner and Disability Lawyer DarrasLaw, America’s Top Disability Firm
How liability coverage can make or break your insurance policy

Auto, homeowner’s and umbrella insurance policies all provide different liability limits. How do you make sure you are protected no matter your age or vocation? Liability coverage is extremely important to have for every aspect of your life due to potential risks like someone slipping on your icy doorstep or a car accident where you cause serious injuries. By reviewing your liability limits, you can protect yourself financially from accidents you caused.


Do

Do understand what liability coverage can do for you

No one wants to think of themselves as the cause of an accident resulting in extensive damage or injury. But that is why liability coverage is so important since it covers the cost of lawsuits and medical care associated with accidents. These costs can be quite expensive so don’t fall back on the smallest available coverage as a way to save money because it could possibly backfire on you.

Do think about purchasing an Umbrella Policy

Umbrella insurance is a good extra to have to add additional coverage on top of your auto and homeowner’s policies. Umbrella policies can provide additional liability coverage in the millions of dollars and helps cover any gaps. An insurance agent can be a great help when setting up this policy to help coordinate this insurance with your other policies.

Do review liability risks that your auto or homeowner’s policies won’t cover

Do you like to go snowmobiling during the winter with your friends? Read through your auto insurance policy to see if snowmobiles are actually covered. If they are not, this is a good example of the importance of a great agent to make sure you and your toys are covered.

Do evaluate your standard policy liability limit

Your auto and homeowner’s insurance policies typically start out with $100,000 in liability coverage but that number is usually too small. Think about raising that limit to $300,000 on both policies so you are covered if someone is injured and sues you. Life throws out unavoidable circumstances when we least expect it but at least you can be covered financially if something happens by preparing for it now.

Do look at why you might need extra liability coverage

When you sit down and think about it, you are surrounded by risks every day that you might need liability coverage for. If you rent a car on vacation and wreck it, liability coverage from your updated umbrella policy will cover you. If a contractor working on your house falls and injures himself, your homeowner’s policy will cover you. Of course, you are only covered up to a certain extent so always try and have more coverage than you think you will need.


Don't

Do not take whatever limit your auto insurance policy offers you

When you drive any kind of vehicle, you take on all kinds of risks. Car accidents happen on a daily basis due to poor driving habits or bad driving conditions. When deciding on liability coverage for your auto insurance policy, you need to take into consideration your suability factor if you are the cause of the accident. Once you do that, you can set your liability limit accordingly.

Do not forget to review the personal liability limit on your homeowner’s policy

While you may have chosen your liability coverage for you auto insurance policy, don’t forget to adjust your homeowner’s policy limit to the same amount. The same factors go into the decision-making process for both insurance policies so don’t get caught with only $100,000 on your homeowner’s policy when you already know you need at least $300,000.

Do not split your insurance coverage between different companies or agents

The best way to be certain you have no liability coverage gaps between policies is to have everything through the same company or agent. Insurance agents are there to help you decide what you need and how to get your money’s worth.
 

Do not ignore the potential aid of a top insurance agent

Not only will an insurance agent help you get top of the line policies, they will also help to plug any insurance gaps you may have. They will know the risks you may be exposed to since they helped pull the policies together in the first place. Together, you can evaluate if perhaps you need an umbrella policy and how much to purchase.

Do not put yourself in obvious situations involving liability risks

After reviewing your insurance policies, you may realize that not everything is covered when it comes to your liability coverage. Say you want to rent a boat for the weekend on a trip with your family, stick within the parameters of what is covered so you don’t end up paying for damages out-of-pocket.


Summary
Jumping cartoon

When it comes to liability coverage, it is essential to make sure you know what will be covered and how much. If you tried to save money by buying a cheap auto insurance policy with only $100,000 in liability coverage and you caused a major accident, you may be in debt for the rest of your life due to legal and medical expenses for the injured party. Review your policies now to receive the best coverage available.
 


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Frank DarrasFounding Partner and Disability Lawyer

Frank N. Darras made a decision nearly a quarter century ago that would affect tens of thousands of Americans. Darras took the road less traveled to help the sick, disabled, and elderly mount a heroic fight against billion-dollar insurance compa...

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