Did you know that your homeowners insurance includes some personal liability insurance for you and your family? You may be wondering why you even need this liability insurance, but the truth is that it’s very important. It can help protect you assets in an age where suing people for accidents is common practice. If you aren’t sure what liability insurance is or why you even need it, read on.Home Insurance
What Liability Insurance Does
Liability insurance protects you from two things: paying out for accidents that happen on your property and paying out for accidents that occur because of your actions. Both of these things are important, as you never know what’s going to happen in the future.
For instance, if one of your neighbors slips on some ice on your sidewalk and has to have surgery for a broken elbow because of it, chances are likely that a litigation lawyer will try to push that person to sue you. Even if you can afford to pay for the person’s medical services, which are likely to cost a lot of money, you can still get sued for pain and suffering and even for the time that person missed work. Your homeowners insurance liability coverage will take care of these expenses, and it will ensure that you can pay for a lawyer if you end up going to court.
The other example is if one of your children damages a neighbor’s property by, say, batting a baseball through the window. This common childhood mistake can be covered by your homeowners liability insurance. However, unless the claim totals up to more than a few hundred dollars, you should consider paying it out of pocket and not claiming it on your insurance, as a claim like this one could make your premiums go up.
Why You Need Liability Insurance
As you can see, liability insurance offers you some protection that you might need. You may think that lawsuits and such may never happen to you, but these things actually do happen. Also, you may not be able to cover all the expenses associated with a liability suit, which can run into thousands of dollars by the time you count in medical expenses, property damage expenses, and legal expenses.
Plus, the more assets you have available to you, the more danger you’re in of incurring heavy expenses from a law suit. People can’t sue you for more than you own, but chances are likely that if you have a lot of available assets, people will try harder to press a lawsuit, as they’ll be able to get more money from you.Home Insurance
For these reasons, it’s very important that you know what your liability insurance coverage will cover within your homeowners insurance policy. If you’re still not sure that you have enough liability coverage, you can buy what is known as an umbrella policy, which is an insurance policy that strictly covers liability insurance.
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