Children and liability gaps can be a big blind spot in your insurance coverage. Having kids means that everyday activities come with more responsibility and risk, but having the right policy in place can give you some peace of mind. No matter what you’re up to, make sure your family has the appropriate insurance protections!
For example, a child could sustain an injury at a birthday party you host. If the parents file a lawsuit against you, do you have enough liability coverage to protect your assets? If your teen driver is responsible for an accident, you could also be legally responsible as well. Are your auto liability limits high enough to provide adequate coverage? Even after children have left home for college, parents can still be on the hook! If your student allows a friend to borrow their vehicle and they cause a crash, the car owners could still be liable.
In all of these situations, and in many other similar scenarios, a personal umbrella policy can help! Umbrella insurance can help you with major claims and lawsuits. Generally, this coverage kicks in when the liability coverage on your underlying policy has been exhausted. The liability coverage provided by an umbrella policy can help with legal fees and can even pay damages, depending on your limits. Even if you don’t have children yet, check out these insurance gaps that could be trouble for married couples!