5 Reasons Liability is an Important Part of Home Insurance Coverage

Liability, or your accountability or obligation to others while they are on property you own, is a very important aspect of home insurance coverage. In short, liability coverage is meant to indemnify, or insure, people who might get hurt, suffer loss, or die on your property. It’s important to be sure your liability coverage in your home insurance is activated and that it is adequate. You hope you never need it, of course, but it’s crucial for your security as a homeowner.

  1. Liability coverage protects you from lawsuits: It seems like the word “lawsuit” is everywhere you go these days. Somebody is always looking to sue somebody else, for injury, loss, or some other detrimental outcome. Lawsuits can be ruinous for those who do not have adequate coverage, in the event of an accident or loss on their property. You could lose more through lawsuits for liability than you might if your house burned down, or was destroyed in a natural disaster. That’s really scary when you think about how much you’ve invested in your home and property, and how important your lifestyle is to yourself and your family. Having it all disappear in a lawsuit judgment would be most people’s worst nightmare. You can protect yourself and your family, and everything that’s precious to your life together, by investing in liability coverage in your home insurance. Give yourself the peace of mind that comes from knowing that, in the event of an accident, loss or death on your property, you’d be prepared to use your liability coverage, and be protected from a lawsuit brought against you by the injured party.
  2. Liability coverage can save you from huge losses: Let’s say your neighbor slips and falls in your driveway. This person is injured, requiring medical attention, which could range from care in a doctor’s office or clinic to surgery in a hospital, depending on the severity of the injury. An injured person might later need therapies to regain strength or mobility. All of this medical care could cost tens of thousands of dollars, leaving you in debt, because you are liable for injuries incurred on your property, whether they are your fault or not. If you have liability coverage on your home insurance, it will help pay for the medical costs and you will not be cleaned out. This is just one scenario; you can certainly imagine many others where a homeowner ends up having to spend a lot of money to rectify an injury or loss sustained by someone while on his property. Some are pricier than others, of course, but the important thing is that, with adequate liability coverage on your home insurance, you can protect yourself from incurring a huge financial loss because of an unfortunate incident on your property.
  3. You’re covered if you damage someone else’s property: Many home insurance companies’ liability coverage also pays out when you or your family member incurs damage to someone else’s property. It’s true: your own liability coverage can help to pay for losses to someone else’s home or property. If you have been in a situation where you or your child has damaged another person’s property, you know this can be stressful and embarrassing. You want to do the right thing by repairing or replacing the other person’s property, but you know it’s going to be a big out-of-pocket expense for you, and you don’t even know if you can afford to do it right. Having liability coverage in your home insurance plan can take a load off your mind. You can customize this coverage to allow it to pay for the repairs or replacement, and let the property’s owner dictate the specifications, using money which comes from your liability coverage. You’ll feel less anxious about borrowing items or spending time at others’ homes when you know that you are covered should something unfortunate occur involving their possessions or property.
  4. Adequate liability coverage is imperative: When choosing liability coverage in your home insurance policy, it’s very important that you make sure you have enough coverage to pay for losses or bills in the event of an injury or other mishap. The average homeowner’s liability coverage ranges from $100,000 to $300,000. Most companies also offer the option to extend liability coverage for a premium; it will cost a little more, but it may be worth it to ensure that if a crisis occurs, you will have enough coverage to pay for it. When you’re getting home insurance quotes, always make sure that the liability coverage offered is adequate enough to help you be prepared just in case you ever need it. You would be responsible for paying any portion of the charges your liability coverage did not pay, such as medical bills, property repairs, etc., so you want to make sure that you are not stuck with a large amount out of pocket. The difference in premium rates may be quite small when extended to your coverage, but the impact on your wallet, in the case of a liability situation, could be huge.
  5. Maintaining your property for optimal liability coverage: Your insurance provider sets standards for your property’s maintenance. This ensures that your home and property are safe and free from imminent danger to visitors. This can include surfaces such as the driveway, the yard, and flooring and stairs in or around the home. It may also include fire safety precautions, protection from weather, or home security. Liability coverage may be contingent on the safety and quality of your home; a less well-maintained home may be considered a greater insurance risk. You can ensure your eligibility for the most liability coverage by maintaining your home and keeping it safe.

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