No matter how careful anyone tries to be, sometimes accidents are inevitable. Maybe someone tripped on a broken walkway in front of your house, or the kids accidentally threw a baseball through a neighbor’s window. Unfortunately, if you or a family member causes an injury or property damage, you might be held personally responsible if your existing liability insurance doesn’t cover the full cost. This is why many people consider extending their coverage or purchasing an extra policy for maximum protection.

Understanding Liability Insurance

What Is Liability Coverage?

When someone is found legally accountable in one of the circumstances described above, their liability insurance will pay any valid claim, up to the limits of that person's policy. It will also cover the legal expenses of defending yourself against spurious claims, which could otherwise drain your savings.

Liability Coverage in Existing Policies

Many types of insurance, including auto, homeowners, and renters policies, include some amount of liability coverage. However, they just cover accidents which fall under that same umbrella—those related to either the car or the house. Usually, they will only pay a limited amount in damages. For instance, if someone's auto insurance includes $25,000 in liability coverage, but they cause an accident resulting in $35,000 in medical expenses, they’ll likely be responsible for paying the difference out of their own pocket.

Should You Extend Your Coverage?

To fully protect the life you’re building, carry liability insurance equal to the value of all your assets, including any savings accounts and retirement funds. However, note that some accidents may not be covered by any of your existing policies, which is why many experts recommend purchasing separate liability insurance. If the damages from an accident exceed your limits or the circumstances fall in the gaps between coverages, a standalone policy will prove priceless for the peace of mind alone.

Since 1989, Alcorn Insurance Agency has been helping Chama, NM, residents protect what matters most. With a range of policies from some of the industry’s leading carriers, their agents have access to the coverage you need at the best rates available. Visit their website for a full list of the policies they offer, follow their Facebook for news and updates, or call (575) 756-2197 for a liability insurance quote today.