Should I Increase the Liability Limit on My Homeowner's Policy?
Your liability limit on your homeowner policy tells you how much insurance coverage you have in case of a liability claim. Many insured's believe if the limit is increased, the amount of the insurance will double or even triple. However, this is not true. In most cases, the cost to move from $100,000 to $300,000 could be as small as $25 a year. Adding an umbrella policy for increasing limits up to $1,000,000 can be purchased for as little as $175 annually. (Estimated cost at the time of this posting)
Many current homeowners are only carriering the minium limit of $100,000. If this is the case with your policy, you might want to contact your agent to see how much it would cost to increase your limits. Of course, having a higher limit gives you and your family better protection and should be considered.