Article 1 of 6 in Understand Your Home Insurance Policy
You always want to make sure that you have enough home insurance liability coverage in case you are found negligent in causing injury or damage to another person while they are at your house. Your homeowners liability insurance coverage provides legal representation if you are sued, and helps pay judgments if you are found responsible for injury. The home insurance liability coverage in your policy is a critical aspect of your insurance package.
What does Home Liability Insurance Cover?
Home liability insurance is standard on all home insurance policies and costs nothing extra for the basic policy limits. Keep in mind that you can raise the basic limits of your home insurance liability coverage for an extra premium if you need more protection. The amount of home insurance liability coverage you need on your policy really depends on your lifestyle, your finances and your comfort level.
Even if you think you are a careful person, and you keep your home safe for your guests, you should still have liability coverage. Homeowners liability insurance not only pays for things that happen on your property, but also things that happen off your property. Consider the following scenarios:
These are all examples of things that can happen (on and off your property) and how homeowners liability insurance would protect you. Be sure to ask a homeowners insurance agent with any questions you have about how liability coverage can protect you.
Limitations to Homeowners Liability Insurance
Like with any coverage, there are exclusions. Below are some homeowners liability insurance exclusions:
Make sure you review you policy's exclusions, and fully understand the limitations to your home insurance policy.
How Much Homeowners Liability Insurance Carry
The amount of homeowners liability coverage you should carry depends upon the nature and extent of your assets, your budget, and your comfort level. Take into consideration the value of your home, and how much your business, personal property and other investments are worth. While there are exemptions as to the amount and type of property subject to a levy in the event of a judgment against you, it is better to have sufficient insurance to protect yourself and all of your assets against any potential judgment. Your homeowner's insurance liability will only pay up to the limits in the event you are sued or there is a judgment filed against you, so if you want additional coverage to protect your assets or property from being turned over, then add to your policy at the time of purchase.
TIP: A reputable insurance agent can guide you on a policy limit that you will feel comfortable with considering your assets.. The standard limit may be sufficient, but ask your agent to quote the next higher limit over the policy's minimum limit. You may find that the difference between purchasing limits of $100,000 and t $300,000 is only $20 in premium a year.
What Else Does Home Insurance Cover?
Not only does a home insurance policy provide liability home insurance to protect you against judgments where you are found negligent, but it also offers medical payments to others that are hurt or injured on your property. In addition, liability home insurance pays for people hurt by you, your household member, or your pets away from your home. Often, this coverage is a no-fault insurance-providing payment for the injury no matter who is at fault. It is intended to cover the costs of minor injuries without the need for a third party to sue for reimbursement.
Homeowner's liability insurance, as well as medical payment coverage, is an important part of your homeowner's insurance policy that provides coverage when you are found negligent in causing damage or injury. If you would like more information about your homeowner's liability insurance, click here and ask an experienced insurance professional. When you are ready to start shopping for your home insurance plan, get the quotes you need for free by clicking here and visiting the Free Advice quote center today.