Is it is necessary to purchase a more comprehensive personal liability insurance policy than what the standard home or renters insurance includes?

We’re here to help you make your decision based on some facts.

You may be held legally accountable for medical bills, legal costs and other expenses in the event a visitor to your home is injured. You may also be responsible for damages incurred on another person’s property.

Personal Liability coverage that is included under your homeowners, renters or auto policy can pay for injury or damage occurrences that you are liable for – up to coverage limits.

What if the costs exceed insurance limits?

Personal Umbrella Liability Insurance

A Personal Umbrella Liability Insurance policy can protect when you are held accountable for a car collision or an accident in or outside of your home in the event associated costs for injury or damages go beyond the limits of your standard personal liability coverage. It will also cover insurance claims that may not be covered under standard coverage.

Insurance Claim Examples from NJ, NY, PA and MD

• An insurance client had a guest over at his home. The guest slipped and fell over a patch of ice on the driveway and seriously hurt her shoulder. The personal umbrella insurance covered $150,000 of medical costs.
  
  
• As an insurance client walked his leashed dog, a little boy came running out of a home towards the dog. The dog leaped at the child and bit him on his cheek. The personal umbrella insurance covered the medical expenses amounting to $60,000.
  
  
• After a holiday party at an insurance client’s home, one guest who had partaken in many alcoholic beverages began his drive home. He wandered into the opposite traffic lane and collided into another vehicle. A passenger was killed. The hostess of the party was sued for $1,000,000.
  
  
• An insurance client rented out his property to tenants. The landlord decided that he needed the home for his own use so he gave a 60-day notice to his tenants. As per law, the landlord was required to move into the vacated property within 90 days which he didn’t. He now faced a $20,000 lawsuit for wrongful eviction.
  
  
• Heavy downpour resulted in a condo owners drain pipe to become clogged, leading to water overflow and damage to the condo situated below his. The personal umbrella insurance policy covered the $120,000 in related damages.   
  
  

PRIME Insurance is a three-generation family-run independent agency. We’re proud partners with many of the leading companies in the industry – big names such as ACE, AmTrust, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!

Summary: Your Homeowners or Renters Insurance includes personal liability coverage up to insurance limits. What if you are responsible to pay more than the limits allow?