Excess liability insurance offers higher limits you may need to cover damages for which you or members of your household may be legally responsible. An excess policy is triggered when the amount you must pay in a covered lawsuit exceeds the limits of liability under your primary home, auto or watercraft policy.
The amount of excess liability coverage that is right for you depends upon your financial situation. A good start is considering the following:
Portfolio review – review all of your assets from your house, investments, 401k, college funds for your children, personal belongings and collections and to some extent, future income potential.
Risk review – Determine your risk factors from long commutes, travel, teen drivers in your household, number of residences owned, domestic employees, watercraft and household online activities.
Perception – Your professional standing and reputation matter. While it may be obvious that being wealthy makes you a target, perception plays a role too. Your profession and success may lead people to pursue larger lawsuits against you.
It only takes a second to lose what you’ve spent a lifetime building.