Liability coverage is probably one of the most important in blankets any home insurance policy, but it is overlooked or downplayed by most consumers. If you are sued because of injuries or damage someone supports due to your action or inaction, if a court determines your negligence causes injury or damage, liability insurance will potentially pay the judgment within cover. During the discussion of this coverage with clients, I hear almost always, "I do not care if I am sued, I have no money. You can not get blood from a stone. "This statement could not be further from the truth, but unfortunately it is how many consumers look for possible prosecution.
This several limitations of liability coverage to choose from on a homeowners policy, but I always add liability coverage as I can so the policyholder has the maximum protection available under their policy . the domestic price difference of a lower coverage or maximum midrange is usually minimal - often less than two movie tickets and popcorn bag
despite the obvious value, I still have people tell me that they do not require as much liability coverage. what people fail to understand is that if you are sued for personal injury or property damage to others, the courts will find a way to get the money you owe the other party. A judge may garnish your wages for the rest of your life, forcing you to liquidate your assets and / or put a lien on your house. In some cases, this action can force you to sell your house to pay off debt. The most common answer to this question is, "My home is homesteaded," but Homesteading only prevents another party to force you to sell your home to pay off a debt. A lien may still be placed on your home, which means that if you ever decide to sell your home, the mortgage (if any) will be paid first, then the privilege. only after they are paid you will receive what the benefits are left, but it is often nothing more to and privilege is still not paid in full.
for example, you are on the golf course and break a long journey. the ball hits another golfer in the head, knocking him unconscious and cause permanent brain damage. This person may not work or function in he was used to before the accident. He goes up to $ 1 million for negligence and wins. A lien is put on your home for $ 1,000,000. Five years pass and you sell your house for $ 300,000. The first $ 0,000 goes to the mortgage company to pay off your existing mortgage, the $ 100,000 "profit" is applied to the remaining $ 1,000,000 you the person you are injured on the golf course. So now you have no home, no money to show for the sale of your property, and you still have this person $ 00,000. And to top it off, a percentage of your current and future income are taken out of your weekly salary to help pay this debt. In order to repay the balance of $ 00,000 over the next thirty years, you would have to hold $ 576.92 of your weekly salary.
As the example above illustrates, this judgment may become a heavy burden throughout your entire life. The purchase of the highest possible limit of liability is the best way to avoid such a situation. For an additional layer of protection, you can also buy a personal umbrella policy to extend coverage on your home, cars, boats and recreational vehicles to higher limits. For more information on personal umbrella policy, look at the video above and then talk to your independent agent on how the implementation could benefit you!
The benefits described here are in the most general terms and are subject to the current political conditions and exclusions. For the actual wording cover, conditions and exclusions, see the policy or contact your agent Central.
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