What is a liability coverage limit?
By Bob Millaway, South Jersey Community Expert & REALTOR®
Your liability coverage limit is the maximum amount your insurance will pay if someone is injured on your property or if you accidentally damage someone else's property. Standard policies typically offer $100,000 to $500,000 in liability coverage. If a lawsuit exceeds your limit, you are personally responsible for the difference. An umbrella policy can extend your liability coverage to $1 million or more for relatively low additional cost.
Why It Matters
Liability claims can easily exceed standard limits. A serious injury lawsuit could threaten your savings and future earnings without adequate protection.
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