Accidents happen...and so do lawsuits. Liability insurance helps keep a stranger's misfortune from becoming yours. For example, letting a tree branch grow over the sidewalk doesn't look like a dangerous hazard. But if a child is knocked off her parent's shoulder, falling to the sidewalk - you could potentially be accused of negligence and sued. If you are found liable in court, your personal assets could be at risk.
Family Liability Coverage helps protect you against the financial uncertainty arising from injury or property damage that you or your family may cause to other people - on or away from your property. It typically includes compensation for the injured party, the cost of defending you in court and any court awards or settlements up to the limits of your policy.
Compare the total worth of everything you have with the limits of your policy and talk to an agent to make sure you are comfortable with your level of protection.
- Retirement accounts [IRA, 401(k), pension plans]
- Non-retirement investments (stocks, bonds, mutual funds)
- Liquid assets (checking, savings, CDs, money market accounts)
- Personal property (actual value of all your possessions if you sold them: cars, boats, jewelry, furniture, etc.)
- Home and other real estate equity
In the event that you or anyone in your household is accused of accidentally causing injury or damage to property, your insurance coverage can help by providing for legal defense fees and, in the event of a settlement or judgment, can pay damages (up to your policy limit). Talk with an agent about limits for this coverage, as coverage is dependent on your particular policy limit.
Click here to read more about Liability Insurance.
