Liability Protection
Did you know your homeowners’ insurance includes liability coverage? Surprised? You’re not alone. Many homeowners are unaware that they might have liability insurance as part of their home ownership policy. Usually, they don’t realize how valuable it can be even when they discover its existence.
To help yourself and your family stay safe, it’s important to understand what liability insurance for your home his and how it can protect you.
What Is Home Insurance Personal Liability Coverage?
Homeowners’ liability coverage is a lifesaver when it comes to paying for any damages for which you could be liable, such as a guest in your home falling down the stairs. This makes it highly useful, because you never know when you’ll need help in the following situations:
- Wage Reimbursement. Your uncle comes to your house to stay for a week and winds up hurting himself in your home for a reason that puts you at fault. His lost wages can be paid out of your home insurance personal liability.
- Medical Bills. Similarly, let’s say the problem your uncle had was that you neglected to fix the broken stairs going down to your basement. His medical bills are mounting and his health insurance doesn’t want to pay. That’s where homeowners’ personal liability coverage kicks in.
- Pain and Suffering. This is a gray area that many homeowners will never have to deal with. However, if you are sued and found legally responsible for the pain and suffering of a person because of negligence on your part (having to do with your property), you might be able to count on your home insurance personal liability coverage.
- Legal Fees. Accordingly, if you need to retain the help of a lawyer, your legal costs can be covered by your home insurance policy.
Be aware that certain liability coverage plans also include events that take place away from your home, such as when you are traveling. Be sure to talk to your independent insurance agent to see if your policy covers these types of occurrences.
What Doesn’t Homeowners’ Personal Liability Cover?
Just as it’s integral to your peace-of-mind to know what your personal liability covers, you also need to know what it doesn’t cover.
In general, your insurance carrier may deny a personal liability claim if the personal damage occurred through intent. Therefore, if your son pushes a friend down and breaks the friend’s arm, your insurance policy may consider this an act of intention, and not coverable.
You cannot rely on your homeowners’ insurance to cover any damages caused by a vehicle, either. That’s what your automobile insurance policy should cover. Other exclusions can also exist.
How Much Liability Protection Do You Need?
Although homeowners’ insurance policies vary, most will give you up to $100,000 in personal liability coverage. If you think you might need more than that for any reason, talk to your local insurance agent about increasing the coverage amount. Be certain to ask about your deductible, if applicable, too.
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