Continuing on our discussion about Renter’s insurance. Today, I’d like to discuss liability part of the policy. Remember, when we went over homeowner’s coverage.
Liability: This coverage may help protect you from paying out of pocket for certain costs if you are found legally responsible for injuries to other people or damage to their property.
For example - Suppose you're held liable after a guest falls down your stairs, or your child accidentally throws a football through a neighbor's window. Or imagine you cause a kitchen fire in the home you're renting.
Liability coverage starts at $100,000. You might be wondering, how much coverage do I need?
The rule of thumb I use to determine how much liability you might need is to look at your net worth and get a coverage equal to that. If you are a high earner, you might want to get additional coverage, because in case of bad lawsuits your future wages can be garnished.
Now, it’s your turn. Everyone who rents need to have renter’s policy in place. If you already have it, double check your coverage for Personal Property and Liability limits.