Why Liability Coverage Is Essential in Every Home Insurance Policy
What if you did not fully understand the policy protecting your greatest investment?
Everyone who has bought a house should protect it with robust homeowners insurance. However, most owners focus on threats like theft or fire damage, not realizing that the most important part of their policy could be the home liability insurance.
What is personal liability coverage home insurance? How does it work, and why is this part of your policy so important, no matter where you live? Keep reading to discover everything you need to know, including how to protect your assets with home insurance.
What Is Liability Coverage in a Home Insurance Policy?
What is liability coverage in homeowners insurance? In short, this is the part of most types of homeowners insurance policies that protects you against damages for which you might be found legally liable. For example, a visitor might get injured while inside your house and hold you responsible. This helps you pay for the costs of their medical bills and even your legal expenses should they take you to court.
If you have ever asked, “What happens if someone is injured on my property?”, then liability protection home insurance is part of the answer. If the injured party holds you responsible, they may take you to court, and even a successful defense could land you in major debt. You can rest easy knowing such expenses will be taken care of once you know what your home insurance covers.
How It Differs from Property Coverage
Personal liability coverage provides protection if you’re found legally responsible for damages to someone else or their property. This is different from property coverage, which is designed to repair or even replace your house in the event of damage or loss.
Why Liability Coverage Matters More Than You Think
As mentioned before, far too many people underestimate the importance of home liability coverage. Such people are usually focused on external threats, ranging from falling tree limbs to opportunistic thieves. And if you primarily want to protect your assets, the property damage clause of your policy can provide greater peace of mind.
Arguably, however, liability protection home insurance is that much more important. Think about it this way: Someone is far likelier to trip and fall in your house than you are to experience a tornado, house fire, or other major catastrophe. Everyone who gets injured in your house could potentially take you to court over what happened. And it is only with home insurance liability coverage that you can protect yourself against this possibility.
Real-World Examples of When Liability Insurance Kicks In
If someone trips on a child’s toy in your house, they may hold you responsible because they think you should have put away the toy. Should they ask you to cover medical expenses or decide to take you to court, your home insurance coverage will kick in.
Common Situations Where Liability Coverage Protects You
Even if you do not have a kid, a guest at your house might get drunk and then fall down. Believe it or not, they can hold you responsible for overserving them and even take you to court. In this case, personal liability homeowners insurance can offer the protection you need.
If you have a pool or trampoline outside, you can also be held liable if someone uses it and injures themselves. Home insurance can protect you, and it will even protect you against scenarios when you are outside the house. For example, if you hit a golf ball into a window and bean the neighbor, or your pet bites someone at the dog park, your policy will still cover you.
How Much Liability Coverage Do You Really Need?
Now you have answers to persistent questions like “What is liability coverage in homeowners insurance?” and “What happens if someone is injured on my property?” But that leaves one major question left to answer: Just how much do you really need?
The exact answer varies from person to person. Most policies start at $100,000 of coverage, and that may be sufficient for your needs. However, you may want to increase that amount over time because you will want to protect your entire net worth, all of which could be potentially threatened if you are taken to court.
Understanding Policy Limits
Like other policies, home liability insurance coverage must abide by certain limits. If you have $100,000 as a limit, that means your policy will not pay out anything above that amount. Remember, you can always increase your limit if you feel additional protection is required.
When to Consider an Umbrella Policy
Do you need protection beyond your existing home insurance? If so, consider getting an umbrella policy. These policies are designed to offer additional coverage, including protection from perils that would not be covered by your regular policy. You may be able to get a higher limit with an umbrella policy, making this a great option for those who need very large amounts of protection.
Protect More Than Just Your Home — Get Liability Coverage
Now you know everything important about home liability insurance. This includes how it works, how much you need, and why it is so important. But do you know who can offer you the best protection in town when you need it the most?
Here at InsureOne, we specialize in protecting homeowners just like you. Ready to treat your house to the best protection and treat yourself to the lowest prices? If so, come get a quote online. Of course, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come find an InsureOne office near you.