Accidents happen, and as a homeowner, you, your children, or your pets can be held liable for injuries to people inside or outside your home or damage to other people’s property. The good news is that your policy can provide you with financial protection against covered liability claims.
what does personal liability insurance cover
Your homeowners insurance provides both property and liability protection. Property insurance protects the structure of your home (dwelling coverage) and your belongings (personal property coverage). and personal liability coverage protects you if you’re legally responsible for damage to someone’s property, or if you accidentally injure someone, whether they’re at home or away.
How exactly does personal liability insurance protect you? let’s break it down.
damage to your property
If someone is injured on your property, your personal liability insurance helps pay for your medical bills and other possible costs. For example, if the injury was the result of his negligence, such as failing to repair a broken railing, he may even be sued. And if you are found liable, the liability coverage within your homeowners policy can help protect your finances if legal expenses occur.
negligent acts of children and others
Suppose your kids are kicking a soccer ball in the yard and accidentally kick it through your neighbor’s window. Fortunately, even though it wasn’t your own home that was damaged, if a member of your family accidentally damages someone else’s property, the liability portion of your homeowners insurance helps provide protection against the associated costs of the accident. /p >
Whether you’re out for a walk or playing in your yard, the liability portion of your homeowners insurance policy will generally help provide protection if your dog bites a person or another animal. Please note that not all dogs will meet the criteria to be included on your policy. Connect with your agent to see if your dog is eligible and learn more about liability coverage limits. Here’s a closer look at homeowners and dog insurance.
what personal liability insurance does not cover
While it’s important to know the many ways personal liability insurance protects you, it’s also important to understand what it doesn’t cover.
This coverage is designed to protect you if you accidentally injure or damage the property of a guest, neighbor, or anyone who is not a member of your household. and it is not an alternative or supplement to your health insurance. For example, if you or a family member is injured at home, your personal liability coverage will not cover the resulting medical bills; That’s what your health insurance is for.
Also, if you or a family member intentionally causes harm to someone, you won’t be able to rely on your personal liability coverage for financial protection.
home insurance liability coverage amounts
See also : Reinsurance | III
Like any coverage, your personal liability coverage offers protection up to your policy limit, which is the maximum amount your insurance company pays in the event of a claim. You’ll choose your coverage limit when you create your policy, and any expenses that extend beyond your limit will come out of pocket. The good news is that you can increase your coverage.
For added protection and added peace of mind, umbrella insurance provides an extra layer of liability coverage above your policy limit, so you won’t have to dip into your own savings in the event of a major claim.
For example, we mentioned that personal liability coverage helps cover you if your dog hurts someone, which is an important protection to have. but a dog bite claim can often exceed your personal liability coverage limit. Having umbrella insurance provides an extra layer of protection in the event a claim exceeds the liability limits you’ve selected within your homeowners policy and helps protect your assets.
Remember, costs can vary depending on the amount of coverage you’re looking for. that’s why your best option is to contact your american family agent to discuss the amounts and limits of the policy; they will help you customize your policy to ensure you have the correct limits for your unique needs.