You increase your limits of liability on your
automobile and homeowners policies and you purchase a personal umbrella policy
to protect your family and your future.
You should also determine just who is covered under the liability protection
you have purchased?
As a general rule, most liability policies in
personal lines cover the following people:
·
You and Your Spouse
The broadest coverage under a
liability policy is provided for the named insured. Both the husband and wife should be listed as
named insureds under a liability policy in order to obtain that broad coverage
·
Resident Relatives
Most liability policies
define this as someone who is related to you by blood, marriage, or adoption
and is currently a resident of the household\
The named insured and resident relatives usually receive very broad
coverage under personal lines policies.
In addition to being covered while driving vehicles that are listed on
the policy, they also are covered for driving a vehicle they borrow or rent, in
most cases. Under the homeowners policy,
they are the only individuals who receive coverage for their personal
activities, both on and off the premises
·
Permissive Users
People who use your vehicles
with your permission are usually covered under your auto insurance. This would include a neighbor or a roommate
who borrows your car. But your auto
policy only covers them when they are driving your vehicles, even if they are
listed on the policy as a regular driver.
Beware – any claims they have with your vehicle will go on your claims
history and can impact the rates you pay in the future
Some liability policies broaden coverage to include broad coverage
for some additional individuals. For
example, many auto policies include broad liability coverage for a ward or
foster child who is currently a resident of the household. This is incidental coverage and varies from
one company to another. Your agent
should be able to help you determine who is covered under your liability
policies
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