What Is Comprehensive Personal Liability Coverage?
If you have a property insurance policy, chances are you have comprehensive personal liability coverage. This coverage, also known as personal liability insurance, is a component included in most property insurance policies that helps financially shield you from a hefty lawsuit should you be legally on the hook for another person’s injuries or personal property damage.
Here are the basics of comprehensive personal liability coverage within a property insurance policy.
What Does Comprehensive Personal Liability Insurance Cover?
This type of liability coverage helps protect you — and members of your household — against lawsuits for property damage or bodily injury.
For example, comprehensive personal liability coverage could be an asset should you find yourself in one of these scenarios:
- The family dog bites a guest during a backyard barbecue at your home.
- Your child’s friend breaks their arm while jumping on your trampoline.
- A tree in your front yard falls and smashes your neighbor’s fence, causing extensive property damage.
Without comprehensive personal liability coverage, you run the risk of being financially responsible for medical bills or damages should these incidents escalate to a courtroom and you’re found liable.
David Garza, a Texas Farm Bureau Insurance Agent in San Antonio, encourages members to increase their liability coverage within a property insurance policy to the $500,000 limit, as this coverage is relatively inexpensive. This means that should litigation have a costly conclusion, your policy would pay up to $500,000 on your behalf.
Need More Liability Coverage? Grab an Umbrella
You might want to consider an umbrella insurance policy if you have a significant amount of assets — a few vehicles, rental property, a boat, or a significant stock portfolio in addition to a home, Garza says. This kind of coverage offers relief once you’ve exhausted the personal liability protection attached to your property insurance.
Depending on the circumstances, a single lawsuit could threaten your net worth — and future earnings. Most employer-sponsored retirement accounts are protected from lawsuits, but in Texas, potentially vulnerable assets can include savings account balances, money market accounts, and bonds.
An umbrella policy can be used to expand your liability protection — up to $10 million — on a property insurance policy. It can be purchased in million-dollar increments, offering decent coverage for your needs at nearly every level.
How Much Personal Liability Coverage Is Enough?
The level of coverage you choose depends on your assets, exposure to risks, and desired level of coverage. In short, it’s a personal decision. But your Texas Farm Bureau Insurance Agent can help provide some clarity.
If you have any questions about the ins and outs of comprehensive personal liability coverage, don’t hesitate: Call your Texas Farm Bureau Insurance Agent today.
Coverage and discounts are subject to qualifications and policy terms and may vary by situation. © 2021 Texas Farm Bureau Insurance
