Home insurance is an umbrella term that describes a bundle of policies that protect various areas of home ownership and liability. One such clause is the homeowner’s liability or personal liability coverage. Liability coverage is a crucial part of your home insurance, so take a moment to read through these few points that could protect you in case of an accident.
What Is Homeowners Liability?
Homeowners liability protects the homeowner in case of accidents that may happen in the home or on the property that lead to injury or damage to the property. You’ll find this coverage included in every home insurance policy from Home Insurance to Condo Insurance, and even Tenant Insurance.
What Does It Cover?
The personal liability portion of your home insurance package covers the cost of defending a lawsuit launched by anyone who may have sustained an injury in your home or on your property. This could also be an unexpected event where you were proven liable.
Bodily Injury Liability
As well as covering legal fees, this policy will provide relief for medical treatment, dental work, ambulance services, hospital costs, funeral costs (gah), x-rays, and a whole host of related procedures and services. These injuries result from slipping on an icy sidewalk, a dog bite, or even someone who has had a few drinks, trips on a rug, and sues you for damages.
Policy Limits and Exclusions
The extent of the coverage provided is up to you when you apply for insurance. The most common Homeowners Liability covers damages and costs up to $100,000; however, with legal costs and rising claims, some industry associations recommend a minimum of $300,000.
Another factor to consider is exclusions. No policy covers everything, so it’s up to you to inquire about those exclusions. If you have any valuable art that could be damaged or if an employee is somehow injured in your home or on your property, you may not be covered if they decide to take action. There are many more situational exclusions that you certainly should ask your insurance broker about.
If you have any other questions about the personal liability component of your home insurance, please get in touch with us today.