How do I protect myself from being sued in the future?

Question

So I'm buying my first house using an FHA loan which doesn't allow me to buy it using an LLC, so I have to buy it in my name. I'm getting insurance for my car, home owners n flood and the agent said that I should have a higher pay out per person for my car insurance if I get into a car accident because she said that I can be sued for my house. How do I protect my house, and myself if I'm ever sued as a result of being in a car accident without paying alot for insurance? Does anyone have any recommendations? What do u do to protect your house and assets? Thx!

Nick C. · Answer

Umbrella liability policy is the way to go.

Deborah Burian · Answer

We carry a basic 1mil/2mil umbrella policy and it's pretty inexpensive.

Tom S. · Answer

@Eric Bradeis  My $2 million umbrella policy is $79 per year for the initial residence and $71 for the initial automobile.  I added on some additional properties after that and it still only $400 per year.  Liberty Mutual.

- Tom

Matthew Rogers · Answer

Just to go one step further; i'd suggest you check with your current insurance provider to see if they offer an umbrella policy that you can bundle. Since you're a current customer and have other insurance products with them they will most likely give you a discount.

I've also heard of situations where the insurance company requires you to have your other policies with them before they will even offer an umbrella policy.

Also, you'll want to compare the cost of the umbrella policy against raising your personal/medical liability on your auto insurance. It may be in your best interest to keep lower maximums on your auto and increase your umbrella because it's more cost effective.

Lastly, shop and compare at lease three companies or speak with a broker. Best of luck.

How do I protect myself from being sued in the future?

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