Paula Abdul's need for personal liability insurance

TMZ.com reports that Jill Kohl sued Paula Abdul back in 2009, claiming that she was seriously injured in a fall in Paula's driveway, during a taping of Paula's reality show "Hey Paula". Jill's lawyer Robert Rodriguez Clayton told TMZ, that Paula has now agreed to pay $900,000 in damages over the incident as part of a settlement.

Very few people would have on hand the kind of money that is often awarded in slip and fall lawsuits. That is why there is personal liability insurance. Do you know what your responsibilities are when it comes to injuries at your household or the extent to which you are insured against potential lawsuits? Start by looking at your homeowner's insurance policy paperwork.

"Coverage E" of your homeowner's insurance policy is for personal liability. That means it provides coverage for you (the insured homeowner) and all resident family members against liability for bodily injury and property damage for which they are legally responsible. The normal claim limit, however, is $100,000. That is why it is not a bad idea to talk to your insurance agent about an umbrella policy. A personal umbrella policy provides a catastrophic layer of liability coverage on top of your homeowner's and automobile insurance policies. So if an accident happened that you were deemed responsible for and injured person was awarded more than your standard $100,000 amount of coverage your personal umbrella policy would pay for the rest.

In Paula's case described above, her personal homeowner's policy would not cover the accident. She was performing business in her driveway, not something like a personal party. For people conducting business on their property they would need an additional policy known as a commercial package policy.

Whether it is personal or business activity happening on your property be sure you are taking precautions to avoid accidents and injuries! Secondly, make sure you are properly insured with the right kinds and amounts of insurance. Be frank with your insurance agent about what is going on at your property and get a professional opinion regarding how to best insure yourself against financial loss.

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