Understanding Liability Coverage for Home Insurance

As someone who will do everything to take care of your property and protect your family, you may ask yourself how you can keep them safe if something happens unexpectedly. It’s a good thing that you can get home insurance to protect your home, as well as your financial well-being.

Once you decide to insure your property, you can find additional coverage to incorporate into it. You can have financial protection from burglaries, fire, or damage caused by natural disasters. While browsing through available additional options for your policy, you may also encounter home liability insurance coverage. But what is it? Here’s an overview:

What Is Liability Insurance Coverage?

Liability coverage is designed to protect your assets, savings and checking accounts, retirement funds, and personal property. If you or your loved ones are legally responsible for property damage or another person’s injury, this coverage can give you protection. Damage caused by your pets is also covered.

The liability portion of your insurance can cover the injured person’s medical expenses, the cost of repairs for property damage, and legal defense. In some policies, you’ll also be covered for defamation. If you’re renting a house or living in a condo, you don’t have to worry because the coverage is available to you as well.

Why Should You Have It?

Over the last 10 years, liability claims have become more common, and the chances of a lawsuit have increased. Nowadays, your financial assets can be at risk if you’re legally responsible for personal damage or are facing a case. This can cost you a lot if you do not have the appropriate coverage; you might even go bankrupt.

How Much Coverage Should You Have?

When someone gets injured in your home, and you’re able to negotiate a simple settlement, your liability insurance coverage can pay for the other party’s medical expenses. But there are extreme instances where a visitor sustains a head injury or a fatal one while inside your property, where the liability coverage will not be able to cover it. You don’t have to worry because you have these two strategies:

Increase the Amount of Coverage

The most common amount for this coverage is $100,000, which may not be enough to cover medical bills and the cost of legal defense, but you can increase this amount to $300,000 to $500,000.

Get an Umbrella Liability

An umbrella policy can provide you with extra protection when your home insurance’s liability coverage reaches its limit. This is a reliable coverage, especially if you’re facing a large legal claim.

Where Can You Get It?

Having the right amount of home liability insurance coverage is important for you to have adequate home protection. Finding a trusted insurance company like Nicholson Insurance is crucial in keeping yourself, your loved ones, and assets safe. Reach out to us today to learn more.