What is Liability Insurance for a Home?
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.
What Does Liability Insurance Cover?
Many scenarios can call for liability insurance. For instance, if someone injures themselves on your property, your liability insurance would cover some of their expenses. Negligent acts of children and others who live in your household, such as hitting a ball through a window, are covered by this type of insurance. Dog bites, depending on the species of dog, can also be covered.
What Does Liability Insurance Not Cover?
Intentional acts that lead to injury or property damage are not covered under liability insurance. The burden of proof may lie on you when making your claim. Business-related liabilities also would not be covered under this part of your homeowners insurance policy.
Liability Insurance Cost Factors
The cost of liability insurance for homes depends on several factors, including the following:
- Home value and size
- Location and associated risks
- History of claims or liability issues
- Deductibles and coverage limits
Protecting your home through liability insurance is just as important as having property insurance. Most home insurance policies cover both types of insurance. However, not all policies are the same. Find home insurance coverage options from over 50 top-rated home insurance carriers in less than 5 minutes today by using Nsure.
