What does Home Insurance Liability Cover? Home insurance liability is standard on most home insurance polices and costs nothing additional for the policy limits. Remember that you can increase the basic coverage limits of your home insurance liability coverage by an additional premium if you require more coverage. There are a number of instances where homeowners wish to boost their home insurance liability coverage in order to protect their home from a lawsuit or other legal claim.
For instance, you were at work and became injured at another person’s house while intoxicated. While at the residence of the injured person, you tripped and fell, which caused you to be found negligent and personally liable for another person’s injuries. This would be considered an injury because you were responsible for another person’s pain and suffering. Your home insurance liability coverage would help pay for medical bills and legal fees incurred as the result of this accident.
However, the home insurance liability coverage in this case would only cover the medical bills. There would be no coverage to help pay for any damage to the property. The injured person could sue you for medical bills alone, which could amount to a large judgment. Because this is a large judgment, the insurance company of course would not want to take on such a high risk. They could drop your policy, thus increasing your liability exposure. The lower your policy limit was the better.
This scenario is not nearly as extreme as it seems. Consider another scenario where a friend or family member slips and falls in your yard. You’re home is not physically damaged, but someone’s property is damaged. While the neighbor’s dog may be well trained, he or she could still slip and fall. Your home insurance liability coverage may not fully cover the costs, resulting in the dog owner being sued for medical bills alone.
These are just two examples that show why it is important to know what your home insurance liability insurance coverages contain. There are also other things to consider. For instance, some insurance policies will exclude coverage of lost wages or pain and suffering. The state you live in may also have a minimum amount of liability coverage that is required by law.
This is why it is important to go over any written documentation associated with your policy. This way, you can be sure that you are fully aware of all limitations and exclusions that exist in your coverage. In many cases, this type of information is found in your booklet or warranty policy, which helps pay for damage caused by natural disasters and other situations.
Homeowners often purchase a condo unit in a safe community that has an on-site master bathroom. However, accidents can occur and damage can occur to personal belongings stored in these units. Since liability insurance will not cover the cost of replacing these belongings, most condo owners must absorb the cost of medical costs. This can be very burdensome for a condo owner with small children and a low income.
If you own a condo unit but do not have medical coverage in place, consider adding additional coverage to your home insurance policy. In most areas, this coverage will be limited to physical injury or damage caused by a third party. To learn more about the options available to you, contact a qualified insurance agent today. You may find that adding liability protection to your basic policy will save you thousands of dollars in the long run.
Before purchasing any homeowner’s insurance policy, be sure to research your state’s laws. Most states require homeowners to carry liability coverage. A basic policy may only cover damage caused by a fire or a broken sewer. A comprehensive policy will also include protection for the contents of your home, such as jewelry and appliances. Your liability coverage may also include liability for damage caused by animals, theft, vandalism and other problems, so be sure to review the details of your insurance policy.
If you’re a dog owner, you may be required to purchase a dog bite liability insurance. The costs for this coverage are based on the type of animal you own and its history. If you own a Pit Bull, for example, you’ll need more than just the typical liability insurance coverage to protect yourself from damages caused by dog bites. Often times, Pit Bulls are involved in fatal dog bites because they are big, strong and unpredictable animals. Even a small accident can cause serious injuries or death for a small, innocent person, so it’s vital to have the right coverage in place if you have a Pit Bull or other breed of dog.
The cost of home insurance liability coverage will vary depending on your location, the policy you purchase and the type of coverage you need. Always consult with an insurance agent before purchasing coverage to determine the level of coverage you need and the premiums you’ll pay. Having adequate insurance protection is essential to protect your financial assets in the event of a lawsuit.