How Much Liability Limit Do I Need?
We get this question a lot and of course it is an excellent question. Unfortunately there is not a good method to determine the answer. No one can tell a client with certainty what limit of coverage they should buy. But here at least are some things to consider in making this decision. Most clients initially do not realize this limit addresses both bodily injury and property damage for a claim.
- Do you own a pool? Do you own a trampoline? Will neighborhood kids or friends have access to this?
- Do you own a dog? What breed of dog? Is it trained or fenced?
- How do you monitor the driving of your family? This includes the adults as well as the young drivers. What type of vehicles does your family drive? Medium or high powered? Of course any vehicle can be going the wrong speed at the wrong time.
- If you rent; what size house or in an apartment or condo, how many units are you connected to and what is the value of these units?
- Are you active with any boards or non-profits? Does your insurance need to apply to these or are you protected by the organization?
- Do any of your activities require certain limits like a lease on a vehicle or home or personal item?
- In the case of bodily injury claims, there is no perfect answer to this question. What could be the medical costs of injuries caused or even in a fatal event?
While these questions all create a worst-case scenario and may not ever happen to your family, these issues must be considered. Some of the best places to seek these answers are from the past experience with your family or seeking guidance from other families. The insurance agent or risk manager may be able to obtain claims data for you.
Hopefully this article has provided some points to ponder in this decision. We suggest visiting with a good personal insurance agent and seeking professional guidance with this question. Contact us today to get started on a free quote.