Don't Overlook Personal Liability Coverage in Home Insurance

When you buy your home, you will inevitably need home insurance to protect it from damage. Home insurance policies include a wide range of coverage options, but one coverage type that often gets overlooked is personal liability coverage. Personal liability coverage is a type of insurance that covers a homeowner's responsibility for injuries/damages caused to a third party caused by their negligence. It includes medical expenses and legal defense costs. This is one of the most essential coverage types every homeowner should have, as accidents always happen. In this blog post, we'll explain personal liability coverage, why it is essential, and how you can get adequate coverage.

What is personal liability coverage, and why do you need it?

Personal liability coverage protects you from financial loss resulting from third-party claims. For example, if someone visiting your home slips and falls and requires medical attention, your personal liability coverage will cover their medical bills. If a pet you own happens to bite someone, your personal liability insurance will protect against lawsuit-worthy instances. It comes in handy when an accident occurs in or around your premises and someone gets hurt.

Personal liability coverage is necessary because accidents can happen anywhere and to anyone at any time. The cost of medical expenses and legal representation can be higher, which may only be feasible for some to pay out of their pockets. Neglecting your personal liability coverage can put you at severe financial risk.

How much personal liability coverage do you need?

While it ultimately depends on your unique situation, most insurance professionals recommend having coverage ranging from $100,000 to $300,000. However, some homeowners opt for even higher limits of $500,000 to $1 million. Your decision of coverage limit can be based on your assets and potential risk exposure.

How can you get adequate personal liability coverage?

First and foremost, it's essential to review your current policy to determine if you already have personal liability coverage. Suppose you don't talk to your insurance provider to include this coverage type in your policy. It's also wise to assess your potential exposures and the coverage limit that suits you best. Customers can purchase personal liability coverage as a stand-alone policy or as an endorsement of their existing homeowner's insurance policy.

It's important to note that personal liability coverage does not cover intentional acts, such as intentional harm caused by the homeowner. Criminal charges could be filed in such cases, and financial protection would not be allowed through the insurance policy.

Personal liability coverage is a coverage type that every homeowner should have. The accidents that could occur are unpredictable, and the costs of medical or legal bills can be very high. The coverage can be obtained by endorsing existing coverage or as a separate policy. Before buying your home insurance, always review the policy's details, including the limit of personal liability coverage. Additionally, it's crucial to review your coverage needs and adjust accordingly constantly. In conclusion, prioritize liability protection to maintain peace of mind and protect your wallet.