Why might an individual choose to obtain an excess personal liability policy?

An individual may choose to obtain an excess personal liability policy primarily to provide additional protection from significant claims that exceed the coverage limits of their standard homeowner's or auto insurance policies. This type of policy acts as a safeguard for personal assets, stepping in to cover claims related to personal liability incidents, such as bodily injury or property damage, once the underlying policy limits have been reached.

Excess personal liability policies are particularly important for individuals with considerable assets or higher exposure to risk, as they can help prevent financial loss due to legal judgments or settlements that may arise from lawsuits involving severe accidents or incidents. Having this extra layer of coverage ensures peace of mind by protecting against potentially devastating expenses that could otherwise jeopardize one's financial stability.