If you are being sued due to an auto accident or an accident that takes place in your home, then it is important to know what you need to protect your assets. By taking action to keep your personal belongings safe, you are less likely to face complications or major financial strife as the result of an accident that caused an injury or property damage.
Before you assume that your personal assets will be seized to pay for the medical costs, property damage or other expenses that the other party is saying you caused, take the time to read through your insurance policy to determine the exact amount of coverage you already have available.
State liability laws for homeowners and drivers are variable, so the exact amount on your current plan might be enough to pay for the expenses. By reading through the policy and noticing the exact amount available, you will be able to determine the amount that you are still liable to pay after your coverage pays for the damages.
If you discover that your coverage is not enough to pay for the majority of the medical costs or property repairs, then it might be necessary to take further action to protect your assets.
If you are worried about being sued in the future due to a family member facing a similar situation, then the easiest way to protect yourself and your financial assets is by increasing your current coverage plan. The basic liability may or may not be enough to pay for damages in the event of a major accident. Purchasing additional protection for liability can help keep your personal belongings safe as long as you have not yet faced a situation where you end up in a court case.
The cost of additional coverage will vary, so take time to talk to your local agent to find the best rates for your needs and concerns.
Putting certain items in a personal trust will also help protect your belongings. Although a court can seize personal belongings that are not protected, it cannot take items from an irrevocable trust. The downside of using a trust is that you are putting the items aside until the requirements of the trust are fulfilled. Ideally, a trust is best used to protect family heirlooms or similar assets that have a high sentimental value as well as a financial value.
Keeping your belongings safe when you are facing a court battle due to an accident can seem complicated, but usually a little more insurance is the only necessity to limit your risk. By having more than the minimum coverage, you can protect your personal belongings by having enough to pay for medical bills or property damage if an accident occurs in the future.
And in order to understand how much the additional coverage will cost, you can check it right here right now on this website using the comparative tool. The tool will help you in indentifying the difference in costs between various insurance companies & also what are the limits of coverages on each quote.
Ways to Lower Your Home Insurance Premiums
Every homeowner needs insurance, but if you’re like most of us, you’ll want to know how to lower your home insurance premiums without sacrificing coverage. So it’s good to know th...
Read More →
Insurance Coverage for Renters With Negligent Landlords
As a young, inexperienced renter, you may think that your landlord has a home insurance policy that will protect you, and that that coverage will pay the cost to repair any damage to your property....
Read More →
My House is Paid Off - Do I still need Homeowners Insurance?
As a homeowner, you probably had to initially get your homeowners insurance policy as a requirement when you got your mortgage. This is because the lender had a lien on the home, meaning that the l...
Read More →