Before determining if you need a personal supplemental policy, it’s essential to understand precisely what additional coverage is, how it works, and how much it costs.
What is supplemental liability insurance?
Personal supplemental insurance is additional liability insurance designed to protect you from claims and lawsuits beyond the limits of your standard policy. It also covers claims that may not be covered under your other liability policies, such as arrest, imprisonment, or unlawful defamation.
What does a supplemental policy cover?
A supplemental liability insurance policy can cover a host of situations; for example, if a guest in your home comes down the stairs and is seriously injured, you may be liable for medical costs, as well as a lawsuit if you are sued as a result of the accident. Accident Your liability insurance will cover those costs up to your policy limits. Still, if medical bills and attorney fees exceed your coverage limit. Then you are responsible for paying that amount out of pocket. However, if you have supplemental personal liability insurance, it will cover the additional payments.
Although you may think that your particular lifestyle does not require extra coverage. The truth is that you never know when an accident or severe situation is going to happen. If you are sued, your savings, assets, and even retirement funds could be at risk. Knowing that you have the coverage and protection you need to avoid future financial headaches could make it worthwhile.
Benefits of having supplemental personal liability insurance
Now that you’ve reviewed what supplemental liability insurance is and how it works. You may think that having extra protection is right for you. Below you can see other advantages:
- Works as additional coverage – Supplemental liability insurance only kicks in when your other liability policies’ coverage ends. If you are found liable for $400,000 in damages due to an accident at your home. But your homeowner’s insurance only covers $300,000. Your supplemental liability policy will cover the $100,000 difference.
- Offers protection for your assets – Without additional liability insurance, the court could turn to your purchases or personal property to cover damages related to an accident.
- Affordable – Personal additional coverage generally comes at a low cost, so you get the peace of mind you deserve at a price you can afford. Many people think that being financially prepared to deal with unexpected circumstances is worth the extra cost.
How much does supplemental liability insurance cost?
The cost of a supplemental liability insurance policy varies depending on the amount of coverage you need to cover your assets adequately. Learn more about additional insurance policies. And talk to a Nationwide insurance agent about the level of supplemental coverage that’s right for you.
What does supplemental liability insurance protect against?
A personal supplemental insurance policy offers you an extra layer of liability protection for your salary. Home, investments, cars, and boats if you are involved in a severe car accident. Or an accident occurs on your property.
It’s essential to have enough coverage to protect your current assets. And future earnings if you’re in a severe accident or sued. Otherwise, you could be responsible for more than the limit of your auto or homeowners coverage.
How Supplemental Liability Insurance Works
A supplemental insurance policy extends your auto and home insurance policies’ bodily injury and personal injury liability limits. Consider the following scenario:
Your homeowners’ insurance offers liability coverage of $300,000. There is a severe accident on your property. And you are sued for $1.3 million, and the judge rules against you.
Your insurance pays up to $300,000 for a covered accident. But you are responsible for paying $1 million, which is the remaining amount.