Three for three…
Those are the numbers on my most recent clients and whether or not they needed their liability coverage completely revamped. Let’s review the action shall we?
Typically, I see coverages of about 300,000 for liability on auto insurance and 500,000 or 300,000 on homeowners’ insurance. Which means per incident, the coverage could be lower and it also means, that in a serious accident, someone (you) might be writing a check.
for example, if you:
- had $50,000 of damage to other people’s property coverage on your auto insurance, and
- you crashed into a Mercedes then
- ricocheted into a storefront, and
- it was your fault, and
- the total accident damage came out to $125,000
Where do you think the other $75,000 is coming from? If you guessed your checkbook or a new home equity loan on your property, you might be correct.
I must say, I don’t know and can’t predict what would happen in each situation. But I can say that the other insurance company is not going to want to pay for your boo boo. And they have lawyers.
Therefore, when putting together your comprehensive financial plan, consider asset protecti0n aspects such as solid liability coverage. And if you’re considering working with a professional to craft your comprehensive financial plan, give us a call (781-393-0021) or drop us a note on our contact form.