Is Liability Coverage Always Included?

When people think of homeowners insurance, they automatically think of the fact that this type of coverage protects their structures, such as a newly installed swimming pool or a new separated garage and of course the house. Although the primary purpose of this kind of insurance is to protect your home in the event of a total loss, there are other components to this type of coverage as well. Liability coverage is standard with your house insurance policy because it helps to protect you financially against any potential lawsuits. It is important that you understand how liability protection works so that you can make the most out of your policy by using it to its full potential.

Liability Insurance Facts

The purpose of liability insurance is to protect you from any lawsuits that can occur if you or another member of your household unintentionally damages another property, or causes injury to someone else. Accidents happen, and these can often involve extensive property damage within another person's home. Liability protection often works by paying for the property damage so that no lawsuit is filed against you.

Just like accidents can occur to another person's property, mistakes can also occur that can result in personal injury. If someone is injured at your fault, then you can submit the medical expenses to your provider and they will pay for them, so long as your policy allows for it. It is important to know that these injuries can be covered whether they occur inside of your home, or if you are outside of your residence. In fact, this kind of coverage can even extend to you if you are out of the state or country.

Although liability coverage can help to prevent lawsuits, sometimes they can come about anyway. This often occurs if the victim does not want to submit any claims information to you for reimbursement. Still, this kind of situation does not put you at financial risk. If you are ever sued, your liability coverage within your house insurance policy is designed to cover all of the associated costs. Court fees, as well as settlements, are paid with your homeowners insurance.

Just as important as it is to know what your home insurance covers, you should also know what the liability coverage does not extend to. Generally, a liability claim cannot be made if you or a family member destroys your own property. Also, if you or a loved one is injured within your home at your own fault, the liability protection does not pertain to these kinds of scenarios.

How Much Coverage to Obtain

The amount of liability coverage you get with your house insurance depends on your own policy. In fact, these are one of the components you will need to decide on before you sign up for coverage. A standard policy might offer $100,000 to $200,000 worth of liability coverage, depending on the provider.

In some cases, you may decide that you want more than the minimum liability coverage with your homeowners insurance. In such cases, you might add extra liability protection through what is called an umbrella policy. These policies often provide coverage with $300,000 to $400,000 or more. These are often appropriate for large families, or if you have guests over at your home quite often. Excessive travelling can also warrant the need of an umbrella liability policy.

Another final consideration is your need for libel and slander policy. If you are ever accused of either acts, then you can be sued and subsequently taken to court for monetary damages. Extra liability coverage can help pay for the costs associated with such accusations against you.

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