Whether you’re in the process of shopping for your first home or consider yourself a seasoned homeowner, it’s important to be well-educated on how homeowner insurance works for you. Liability insurance is included in the average homeowner’s insurance policy, but very few homeowners have a true understanding of what this coverage is and why it’s so important.
What’s Typically Included
Generally, liability insurance is designed to protect you, the homeowner, from being held financially responsible for personal injury and/or property damage claims connected with your property. For example, if your mailman slips on your walkway while delivering mail and tries to bring a lawsuit against you as a result, your liability coverage can help pay for the injured party’s medical bills, repairs to the person’s personal property, along with any court or legal costs that may be incurred as a result of the accident.
Some common situations in which your liability coverage can protect you include dog bite injuries, slip-and-falls, and damage to your neighbor’s home from a fallen tree.
There Are Some Exclusions
While many homeowners have at least a vague understanding of what liability insurance is and what it can protect against, what some homeowners don’t understand is that there are some important exclusions to liability coverage. By being aware of these exclusions, homeowners can plan accordingly and take the necessary measures to avoid a situation where they’re not protected by their liability insurance.
For example, liability insurance doesn’t cover cases of purposefully inflicted injury. For example, if your child gets into an argument with the neighbor’s child and decides to push him off the playscape in your backyard, you may still be held responsible for the injured child’s medical expenses and related costs. Furthermore, many liability insurance policies don’t cover damages caused by your personal vehicle. Instead, these should be covered by your auto insurance.
An Umbrella Policy Can Increase Coverage
Finally, if you’d like additional peace of mind, you may want to consider purchasing an umbrella insurance policy; these are often sold by homeowners insurance companies and can increase your total liability coverage. In many cases, an umbrella policy doesn’t cost much more than a traditional homeowner’s insurance policy, so it may be worth looking into.
Now that you have a better understanding of what’s covered versus what’s not covered by your liability insurance, you can enjoy greater peace of mind as a homeowner. If your are considering a homeowner’s insurance policy, contact Spickelmier Insurance today to learn more about your options. Our experienced agents are here to make sure you are able to protect the things that mean the most to you.