Clients often want to know how much liability coverage they need to protect themselves. When this topic comes up in conversation, I tell people that there is no particular amount of coverage that can guarantee they will be fully protected if something happens. But we can look at ways to minimize the risk.

When we think about our liability concerns, we have to understand our exposures. Home, auto, boat, etc.. Are there youthful drivers? Do you own dogs? Are rental properties a part of your portfolio?
 
Obviously, the higher the limits of liability you carry minimizes the chance of personal financial loss. As an insurance agent, I try to be prudent with my advice. Keeping in mind cost versus coverage. For example, most home insurance companies offer high limits of liability for less than $50 per year. Whereas high limits of liability on an auto policy may cost you several hundreds of dollars per year per vehicle. 

The best way to minimize our liability risk is to purchase a liability umbrella policy. This type of policy adds a layer of liability over our home, auto, boat, rental properties and RV types of policies. Umbrella policy limits are typically sold in increments of $1million and are surprisingly reasonably priced.

We have to understand, in this litigious society, that there is no certain formula to make sure we can be fully protected because it depends on the severity and significance of the liability claim. The best practice is to purchase as much liability insurance as makes sense for your budget.
 

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