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Bringing a new family dog into your home can bring joy and camaraderie. But what if your new dog escapes your fence and bites a neighbor? If your neighbor decides to sue you for the injuries, you could end up paying a pile of medical and court bills.
Fortunately, home insurance includes personal liability insurance that covers these types of incidents as well as your legal defense costs. Understanding personal liability insurance in your home insurance can help you ensure adequate coverage.
What is personal liability insurance?
The personal liability insurance is in a. contain Household insurance, and also with Tenant and condominium insurance. This coverage protects you from paying out of pocket if you (or another member of your household) are held responsible for personal injury or property damage to a third party.
For example, let’s say someone slips and falls down a flight of stairs in your home and then sues you. The private liability insurance pays for court judgments, settlements and legal invoices up to the amount of your liability insurance sum.
Examples of common claims are:
- Medical bills for someone injured in your home
- Loss of wages for someone injured at home who is now unable to work as a result of the incident
- Legal fees if someone sues you
- Problems that occur outside of your home but for which you are responsible, such as: B. an accident injury that you
- Child causes another child on the playground
- A death benefit for a family who lost a loved one in their home following a fatal accident
What personal liability insurance does not cover
Some of the claims that household contents liability insurance does not cover include:
- Car accidents (these are covered by your car insurance)
- Injuries to a member of your own household
- Willful harm or injury you cause to others
- Claims from business or professional activity
Do you need additional liability insurance?
When you have assets and savings, you can be an attractive target. Other factors can also increase your chances of being sued, such as:
- Your home has a dog, swimming pool, pond, or trampoline
- You own horses or other large animals
- You have large gatherings in your home
- You are on a non-profit board of directors
Most home insurance policies offer personal liability coverage of at least $ 100,000. But that can be exhausted quickly if someone files a major lawsuit against you. Consider increasing your liability insurance to $ 300,000 or $ 500,000.
Also think about buying Umbrella insurance from your home insurance. Umbrella coverage is a great way to add extra liability insurance to both your car and your car at low cost Home insurance Guidelines. Umbrella coverage limits typically start at $ 1 million.
A lawsuit can quickly drain your bank account. In this context, check the current liability insurance sum in your home contents insurance and in any roof insurance you may have. If the total liability is less than your net worth, or what you could lose in a lawsuit, it is probably time to increase your coverage.