Case 5 Partially Covered: Claim Exceeded Policy Limit
A renter in New York City carried $100,000 in personal liability. A guest suffered a serious fall that resulted in a traumatic brain injury requiring extended hospitalization and long-term care. The total judgment: $340,000. The renters policy paid $100,000 — the full limit. The renter was personally responsible for the remaining $240,000, which required liquidating savings and entering a payment plan. A $300,000 or $500,000 policy — or a personal umbrella policy — would have covered the full judgment.