Finding out how much insurance you need and what kind can be a daunting prospect. If you’ve ever purchased homeowners insurance, you may have been asked if you want a general policy as part of your insurance coverage. To get the best coverage possible, and to protect yourself from any unforeseen circumstances not covered by a normal policy, it may be necessary to add additional liability coverage in the form of a general insurance policy to your auto and home insurance. policies to protect you and your family.

This is why.

Lawsuit Protection

Kiplinger recommends that you have a blanket policy of at least $1 million to provide liability coverage that extends beyond your auto and homeowners insurance policies, even if you have less than $1 million in assets. If you are ever sued and you do not have this general policy, you could be responsible for paying legal fees for current and future assets. Even if you ultimately win the case, legal fees will affect the settlement because they add up so quickly. It’s a good idea to get liability insurance limits that total as much as your net worth, plus if you can afford it. This additional lawsuit coverage will take care of defense costs, as well as liability coverage for lawsuits not covered by your auto or home insurance. In a broader sense, umbrella policies provide coverage beyond your normal coverage and offer:

Property Damage Liability

slander/defamation

Bodily Injury Liability

Legal fees and defense

you never know…

It is impossible to know if, when, and who you will injure in the future, whether through a car accident or some other scenario. Just think of this possible example: you insult a professional athlete, a CEO, or a doctor. They may not be able to work for 10 years because of their injuries. You would be responsible for paying your lost wages, medical bills and compensation for pain and suffering, and lost wages alone start at $3 million and go up from there, Bankrate says. It’s better to buy a general policy now, with at least $1 million in coverage, than to be left with the bag later. If something happens and you don’t have a general policy, it will be too late to add one.

peace of mind

If you’re worried about losing income and assets to a potential lawsuit, you need a blanket policy. Considered a wise buy in the insurance industry, this is one of those things that isn’t initially very exciting to buy like a new car or a vacation, but it gives you immeasurable peace of mind knowing that if you have to use it, it’s there and will protect you. . Plan to pay $150-$200 for the first $1 million of coverage, then about $100 for every $1 million you add. Do you want more information about general insurance policies? Contact us today to speak with a representative and learn how it can benefit you!