How much liability coverage is enough?
When making a decision on what the proper liability limit is correct for you and your family, we take two things into account:
- What is your net worth/future earning potential?
- How much coverage can you afford to purchase?
It is safe to say that even the most cautious family should carry a primary liability insurance as part of their home and auto equal to at least $500,000, plus at least $5 million in excess limits.
Lawsuits are all too common in today’s litigious society. If any individual is involved in an accident and then sued for an amount greater than their existing personal liability coverage, assets such as their home, belongings, investments and future earning could all be at risk.
At a minimum, be sure that the sum of the underlying home and/or auto liability limit plus your umbrella is greater than or equal to the market value of your assets plus expected future income. In the United States if you are sued and the judgment exceeds the limits of your liability coverage, your wages can be garnished and/or assets seized.
Daigle & Travers’ has three locations in Fairfield County (Darien, Westport and Wilton). We are a short ride from Westchester and Long Island. Let us work with you to find the appropriate amount of liability insurance coverage for you and your family. We work with over 30 carriers to find the insurance that is right for you. Give us a call at (203)-655-6974.