We go through our daily lives dealing with the minor ups and downs of life: work, weekends, vacations, holidays, etc. And for the most part scary things don't happen, but as we know from the news scary things do occur. Car accidents, house fires and other challenging situations happen and they can cause financial strain. But that's were insurance comes in. Insurance is there to help minimize the financial effects of challenging situations if they were to occur.
In this article we're going to address one general part of insurance, personal liability protection, be it in your home policy or your auto policy. These personal liability coverages are there to provide protection in the event of a claim or lawsuit regarding a situation with another party.
So let's get right down to the question, “Do I have enough protection if I were sued?”
I know that's kind of a scary question, but there's a simple way to start working towards an answer by establishing a couple of items.
Item 1:
In the event of a lawsuit what assets could you "loose". Or in other terms how big is your "pile of money"? Things like your house, retirement, vacation property, investments, stuff like that which could be attacked in a lawsuit.
Item 2:
How much liability coverage is in your current insurance polices?
Answer:
Is your current coverage more or less than what you have to loose?
Looking at things in this manner is pretty simplistic but it leads us to the right place, a basic understanding of your coverage needs.
This is the kind of conversation that you should have with a professional insurance agent like myself. Someone who can help simplify things so you can make good educated decisions.
Remember, insurance is all about thinking ahead today, to protect how you can live your life tomorrow.
Author: Andrew Johnson
Insurance Agent & Owner- Frankfort Insurance Agency, Frankfort Michigan
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