I received a call the other day from a woman who said she needed some of her contents covered while she was moving. She was going to be living at a friend’s house for several months. She just wanted her contents covered.
I told her that I could cover her contents and would also include personal liability. She asked if that was really necessary. **Here is the part where I would love to say, “Not really, I just want sell you more insurance because I am starving insurance agent.” ** Disclaimer–I would never do that and to this point I am well fed. However that would be funny.
The reality is that personal liability comes with homeowner’s and renter’s policy for usually very little premium. Personal liability includes coverage for negligent acts. Also, personal liability provides defense coverage if someone files a lawsuit against you.
I explained why personal liability is often overlooked and why it is so important. To solidify my point, I came up with my top 3 reasons we all need personal liability.
1. People love to sue others for things that are their fault.
Little Johnny sneaks over to the neighbor’s house to play on their swing set without asking. The swing breaks and little Johnny gets hurt. Is this little Johnny’s fault. Probably. Guess who gets sued. Homeowner. Crazy, but true.
2. Accidents do happen
I love to play golf, but quite honestly, I am not very good. Have I ever hit anybody in the head with a golf ball? Not yet. Will I in the future? Yes, if I don’t get better soon. If you think your recreational activities and hobbies could harm someone else, it’s probably a good idea to make sure you have enough personal liability.
If you have kids, have they ever done things you can’t believe? I know mine have. Truth is, we are responsible for our kids, even when they do stupid things. Kids=Accidents.
3. You never know
Every time I hear strange claim stories I always think I have heard it all. Then I hear something even crazier. Weird things happen all the time. The bottom line is that you never know what can happen so make sure you are protected.
There are a countless number of other reasons and circumstances why personal liability is so important. I discussed some other liability options, such as personal injury coverage and the importance of maintaining high liability limits in other blog posts.
Have I scared you? If so, that wasn’t my goal, but I do think it is very important for everyone to be aware of the risks out there and ensure you are prepared.
Have you experienced a liability scare or lawsuit? I would love to hear your story.