A Policy Limit is the maximum your insurance company will pay out. Are you well protected? (Scenario – My client is “at fault” for an automobile accident.)
My client called in yesterday and told me he received a letter from our claims departments. The key points of the letter are listed below:
. This letter serves as notification that a lawsuit has been filed against my client. . Monetary demands of the claimant exceed my client’s policy limits. . Client is encouraged to get additional legal counsel to protect his interests in excess of the policy limits. . The claimant demand letter is seeking $200 Kenny Golladay Color Rush Jersey ,000 in bodily injury liability damages. . My client’s automobile insurance policy has a $100,000 limit.
Well, it doesn’t take a mathematician to figure this problem out. My client may be on the hook for an additional $100 Teez Tabor Color Rush Jersey ,000. Ouch! Did I tell you my client is retired and 67 years old?
An automobile insurance policy in Dallas, Texas may have the minimum liability coverage of $30,000 for bodily injury. That is woefully inadequate. How much liability coverage do you have?
Many clients ask me Jarrad Davis Color Rush Jersey , “How much coverage is enough?” I generally respond, “I’m no oracle. I can’t predict the future.” So in the absence of future knowledge, here a few good tips to hopefully prevent this situation from happening to you:
1. Purchase as high of a limit as you can. Don’t assume that a higher limit of liability will cost you a fortune. Just because you double your limit does NOT mean that you are doubling your premium. It doesn’t work like that. In fact Kerryon Johnson Color Rush Jersey , you’ll probably see that your premium increases only slightly. Ask the agent to quote several limits so you can see for yourself. I guarantee any premium increase will be minimal!
2. If you have a lot to protect (such as real estate), give serious thought to buying a personal umbrella. The most typical policies provide an additional $1 million in liability for both your auto insurance and home insurance. In this example, the auto policy would pay out its maximum $100 Frank Ragnow Color Rush Jersey ,000, and then the umbrella would pay the difference. The cost for an umbrella averages around $250 a year.
Make your auto and home insurance work for you. Check your policy and make sure you have at least 250,000 on bodily injury. Remember Marvin Jones Jr Color Rush Jersey , accidents can happen to anyone.
Your thoughts? Tell me about your experiences.
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Hilfe Engel - Forum
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04.06.2019 10:36
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