We are often asked about the specific coverage provided by the liability portion of a homeowner’s insurance policy. We want to spend this post explaining what the coverage is and how it helps protect you. Please keep in mind that every policy is different and that you should always refer to your specific policy to find out what coverage is provided.)
Medical Bills
If a visitor is injured within your home or on your property, your homeowners’ insurance policy will typically pay for the reasonable medical bills for the injured party. Even if the person has health benefits, you could still be held responsible if the injury is deemed to have been caused by your negligence.
Pain and Suffering
After the medical bills are taken care of, some people experience lasting pain and suffering as a result of the injury. Your homeowner’s insurance policy will typically cover all or a portion of this as well.
Loss of Wages
If an injured part cannot return to work for an extended period of time, you could be held liable for the person’s lost wages.
Death Benefits
Nobody wants to think about the possibility of someone dying in their home, but it’s something that you can’t exclude. The average home liability policy can also cover death benefits to the family of someone who meets an untimely end as a result of an accident in your house or on your property.
Legal Costs
One of the most significant benefits to the liability portion of your homeowners insurance policy is the coverage for attorney’s costs. One of the most critical expenses associated with a claim is the cost of hiring an attorney to defend you. When you buy liability insurance, your insurance company often covers most of the hiring of an attorney and any other associated legal fees.
Coverage Away From Home
Believe it or not, your personal liability coverage will also protect you for bodily injury and property damage you cause away from your residence. (With some exclusions, on your auto or business.)
