WEDNESDAY, DECEMBER 23, 2020
When you buy your first home, you of course want your homeowners insurance policy to cover your dwelling and possessions against damage or loss. However, an often-overlooked perk of this coverage is how it can protect you if someone ever sues you. Most homeowners policies offer liability insurance, and this coverage isn’t designed to help you repair or replace a certain item. Instead, it’s there to make sure you don’t lose incalculable personal funds just because you made a mistake that harmed someone else. Here’s why it’s important to have this coverage.
Understanding Liability Insurance
You want to make your home as safe and inviting a place as possible. However, the fact of the matter is that you can’t eliminate every potential hazard that might occur, and equal a huge liability for you.
To be liable for something is to be responsible for it. So, if you accidentally cause someone else harm, even unintentionally, then you might be required to repay them. They might even sue you over their loss, which could lead to a lot of financial strain as you work to recover. That’s why your homeowners insurance offers liability coverage to address these situations. It’s there to help you compensate others when your mistakes have led them to demand compensation from them.
Why Can I Benefit from Liability Coverage?
With homeowners liability insurance, you’ll be able to compensate someone for your negligence without having to spend countless personal funds. Therefore, your overall financial security will remain intact, enabling you to feel more secure in all parts of your life (even outside your home).
Consider some of the scenarios that might trigger a liability claim:
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A neighbor comes to visit your home, but while there, they trip on a broken step, fall and sustain broken bones and a head injury. This might lead them to face high medical bills, a loss of income, and a lot of personal insecurity. They might sue you to cover these costs. Your liability policy will cover costs related to these bodily injuries, including your legal fees and the eventual settlement.
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One night, you and your family decide to light a firecracker in your backyard. However, debris from the explosive lands on a neighbor’s roof, and it catches fire. The neighbor might demand compensation. Your liability policy can therefore provide the appropriate property damage assistance to them.
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Many policies also offer accidental medical payments benefits. A guest might simply hit their head on an open cabinet and pass out, requiring an ambulance ride. In this case, you might have no fault in their injury, but they still might need help paying for their medical costs. A claim against your medical payments benefits will make sure they get it.
It’s important that you work with your insurance agent to determine what levels of liability coverage are best for you. After all, you want to minimize the financial impact of a lawsuit, which for different people can mean needing different amounts of benefits.
Plus, you often have the opportunity to expand your standard liability coverage with other benefits like umbrella coverage, pet bite liability endorsements and personal injury coverage. Just talk to your agent about the best way to structure your benefits to your advantage, and we’ll soon have you well on your way to perfected coverage.
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