Do you have enough liability insurance coverage? Many people — especially families with a higher net worth — don’t. Accidents happen. Perhaps someone slips and falls on your property. Or you or a member of your family are involved in a vehicle collision. Or your dog bites a stranger. If you’re the subject of a lawsuit, the cost of defending yourself and/or damages can run into hundreds of thousands or, depending on the severity of the event, even millions of dollars. Although your 401k and IRAs are most likely shielded from a liability claim, your non-retirement accounts and other assets could be at risk. Even worse: You could be forced to pay a judgment from both your current assets and your future earnings.
You have the opportunity to purchase liability insurance coverage to protect yourself and your family through both your homeowners and auto insurance policies and through stand-alone umbrella insurance coverage.
That’s why it’s so important to make sure you and your family have enough liability insurance coverage in both your homeowners and auto insurance policies. State minimums for auto insurance are woefully inadequate in terms of providing meaningful protection. Most homeowners insurance policies start at about $100,000 in liability coverage, and that is much too low for most higher-income households. In many instances, policyholders are better protected maxing out on liability coverage and purchasing umbrella insurance coverage as well. These liability-only policies provide a minimum of $1 million in coverage against lawsuits. Don’t think you need that much coverage? Think again. Umbrella insurance policies can also pay the costs of defending you in a lawsuit, which in today’s litigious environment can quickly add up — even if you win your case.
At Sentry West, we know that people with large assets have unique risks. Rather than trying to fit you and your family into “off-the-shelf” coverage solutions, we’ll review your lifestyle, assets and risks to help you protect yourself and your wealth with the right type of insurance. It’s customized coverage that protects you at home and on the go. Learn more about our company and our wide range of solutions by visiting our website: {{account:url}}