When your insurance coverage limitations exceed the amount you are required to pay for lawsuits regarding liability, your personal assets are at risk of being seized to cover the bill. These severe circumstances are usually difficult to avoid, but there are plenty of ways around it that can be established before the problem occurs to put you in a safe situation in case your insurance runs out.
Perhaps the most salient way to protect your assets is to purchase more insurance. If you just have a basic insurance package, you are given limitations on coverage for liability that don't always cover the bill for severe cases. Fortunately, most insurance companies offer additional coverage packages, such as liability umbrellas, to cover anywhere from one million to five million dollars worth of damages and fines. Clearly, these additional coverage plans are capable of footing a hefty bill in case severe circumstances arise. If you are especially worried about your valuable assets being seized by the state in case of an accident, you will want to purchase an additional insurance coverage policy to make sure your assets are fully protected.
A limited liability company (LLC) can also help you protect your assets. Although an LLC can help protect your assets, a Judgment Creditor may limit your access to these items until the process is completed. Although this may not be entirely ideal, it is an effective method for preventing your assets from being seized. Additionally, if you are worried about something like family heirlooms, being cut off from access to these items shouldn't be too much of a problem. You can even protect your assets through a personal trust as well.
Although you can certainly help protect your assets through LLCs and personal trusts, the best way to prevent anyone from even attempting to seize your assets is by having a back-up insurance plan. Liability umbrellas are the safest methods for keeping your items safe and should certainly be considered by those with a highly valuable estate.
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