How Much Insurance Should You Carry?
Though consumers must choose their limits of insurance, agents may have access to resources that can assist in determining adequate values (e.g., cost-estimation tools, coverage checklists, etc.) An agent’s survey is a good way to determine if your insurance is sufficient for your coverage to function properly.
What can prove to be more difficult is determining adequate limits of liability. Many liability losses wind up in lengthy litigation. Even if you have done nothing wrong, you are forced to defend yourself. The cost of this defense is covered by a liability policy if the loss is a result of a covered claim. At the very least you must protect your personal assets if you are buying personal liability.
Some products can extend coverage and close potential coverage gaps. For example, a personal umbrella policy is a relatively inexpensive way to increase your liability coverage limits and may also offer valuable additional coverage for your personal insurance portfolio.
Remember that you want your insurance to work if and when you need it – not excuses as to why it may not. So it’s essential that adequate insurance limits be maintained at all times. A survey with your trusted insurance agent will help determine how much coverage you should have, while giving you peace of mind that everything will be handled if there is a claim.