Homeowners insurance keeps homeowners covered if something happens to someone’s home or on someone’s property. While property insurance covers the structure of your home and your belongings, liability insurance protects you if you’re legally responsible for damage to someone’s property or an injury to them whether or not you’re at home. This coverage is essential, especially if you have children or pets. Here’s why.
Understanding Liability Insurance
Liability insurance covers three key areas:
- Property damage
- Bodily injury
- Legal expenses.
Anything that happens on your property can legally be considered your responsibility, which can get tricky if something goes wrong in or around your home. State laws differ, but generally, what happens inside your home can get you in trouble. Liability insurance protects homeowners by covering the costs of some of the most common accidents that happen in and around homes.
Types of Liability Coverage
Personal liability coverage protects homeowners if they’re held liable for someone else’s injuries or damage to someone else’s property while they’re in your home. Medical payments coverage for your family is separate and can often be added to your insurance policy if needed. Umbrella liability coverage can also help with medical expenses, as well as many situations in which you could be sued.
