What does Home Insurance Liability Cover? Home insurance liability insurance protects you against the loss or damage of your home, other structures, personal property and the money you may borrow against the value of your home. If tragedy strikes and someone have to be taken to the hospital, the cost of the medical treatment would be draining and you might lose the value of your home. Home insurance liability insurance covers the costs involved in coping with a catastrophe like this.
Who is Eligible? Home insurance liability coverage is minimum on most home insurance polices and costs nothing extra for your policy’s minimum limits. Remember that you could raise the above-mentioned minimum limits for an additional premium if you require more protection. You could also raise the limits to legal responsibility limits which would cover your guests and the people in your home who are not directly living in the house. Or, increase the legal liability limits to include any expenses that arise as a result of injuries caused to others. The amount you pay for medical coverage depends on the medical coverage limits in your policy.
Do I Have to Lose My Rights to Full Compensation? If you have been injured in a mishap outside your home, you are entitled to compensation for your injuries even if you are not at fault. In case of an injury inside your home, you will be fully liable to compensate for any property damage. In most states, liability insurance also covers your legal expenses if you end up filing a lawsuit against someone because of your injury.
How Can I Find Out If I Am Found Negligent? If you have been the victim of a physical injury, the injury report should have details of the incident. It is important to get as much information on the event as possible. Contact your home insurance provider and get more details about what happened before you contact a lawyer. Some home insurance providers require a self-opsy report to be filed with the police. If you are unsure what happened, it is advisable to get this done as soon as possible.
Who is Covered by Homeowners Liability Insurance? Your landlord is not covered under homeowners liability insurance. He or she is covered by the rental property management policy. If you are renting and the other person has sued you, your landlord is not required to pay damages. However, your landlord cannot be held responsible for injuries that happen on the premises.
Does My Medical Bills Counts? Many people mistakenly think that medical bills only apply if they get treatment from a doctor. This is not the case under homeowner’s liability coverage. If you have been injured in an accident caused by another person’s negligence and the medical costs have already exceeded $2500, your home insurance company will cover these costs.
How Do I Get the Best Out of Home Insurance Liability Coverage? To get the most out of your liability coverage, you should know how to review your policy and choose the right limits for your needs. There are five classifications of limits that your home insurance provider provides. If you choose one of these classifications, make sure you understand what the limitations are and how you can increase your limits if needed.
What is Actual Cash Value (ACV)? This is the value of your dwelling coverage multiplied by the actual cash value of your belongings. With this type of coverage, the insurance company will not deduct depreciation. Your insurer also will not subtract inflation.