Mishaps and accidents happen all the time, and while these incidents are often beyond control, they are not beyond the realms of responsibility. Intentional or unintentional, when another person suffers any form of a loss due to the actions of another individual — they do have a right to seek a form of compensation. Personal liability protection can help protect the everyday person from the financial consequences that come along with this type of event.
Beyond Physical Damage
Personal liability protection does not just provide a shield for physical injuries, such as a neighbor injuring themselves while in your home. Liability is a general term that can encompass any type of event in which you are found to be responsible.
It does not matter if you are sued for slander, have a rental property and have a tenant sue you for wrongful eviction, or you are sued for another reason, this policy can help provide you with a shield of protection.
Personal liability coverage is similar to other policies in that the insured has the option to determine how much coverage they want. For example, you can choose to have a million dollars of coverage, $3 million, or another amount. However, how this coverage is allocated is varies.
For instance, with this type of coverage, just because you have $3 million worth of coverage, it does not mean that the insurance company will pay this amount in a single claim. Sometimes, there are limits on the amount of coverage you have for each occurrence or claim. Make sure you review this information when you set up your policy to ensure it offers the coverage you need.
It is also worth noting that how much each person pays for this coverage is largely dependent on their risk factors. Insurance companies always base premium amounts, in part, on the level of risk that the insured poses. Typically, the greater the risk, the higher the premium.
People with a history of being sued, those with increased hazards on their property, such as a pool, or someone that owns a large number of rental properties may pose a greater risk than people who are on the opposite end of the spectrum. Keep these factors in mind as you plan the cost for this coverage.
Nearly every form of insurance can be tailored to the specific needs of the insured. If you want to learn more about customizing personal insurance coverage, speak with an agent for further assistance.