The addition of a new pet to your home can be a high point of any season, as the companionship and excitement can instantly renew any living space. Things can turn sour quickly if your new dog happens to bite or otherwise attack a neighbor, and if you are sued things can get costly quickly. The best homeowners insurance policies will include personal liability coverage, which will cover these incidents on top of your legal defense if you end up being sued. Thoroughly understanding the personal liability coverage in your homeowners insurance can ensure that you always are armed with the amount of coverage that will protect the place where you want to make memories for years to come.

What is Personal Liability Coverage? 

Personal liability coverage covers accidental injuries and property damage that you or anyone in your home causes to others. One very common instance is anyone who suddenly loses their footing and falls down a flight of stairs. Personal liability coverage can pay for settlements, legal bills, and lawsuit judgments up to your liability coverage amount. Following are some examples of common claims that can suddenly wreak havoc on a happy and cozy household:

  • Medical bills for someone injured on your property.
  • Wages lost for an individual injured at your home who is unable to work due to injury or long-term confinement. 
  • Problems that happen away from home but you could be considered responsible for – such as injuries that children can accidentally cause while playing together.
  • Legal costs if you are sued by a party guest or neighbor for any reason.
  • A death benefit to any family whose loved one may have incurred a fatal accident at your home.

More Coverage, More Security: The Importance of Extra Liability Insurance

If you have assets or savings in any form, you could become a target for a lawsuit. In this quite frivolous age, here are some other factors that can boost your chances of being sued: 

  • If your home has a swimming pool,a large dog, pond fixture, or trampoline. 
  • If you own horses or other large animals.
  • Fundraising, live music, or other multiple gatherings in your home or backyard. 
  • Serving on a non-profit board.

Most homeowners insurance policies provide at least $100,000 in personal liability coverage, which can be rapidly depleted if any individual chooses to file a large suit against you. One good tip is to consider raising your liability coverage to $300,000 or $500,000 or to consider buying umbrella insurance from us here at the Alexander Insurance Agency. Umbrella coverage is a great way to add more liability insurance without breaking the bank to both your home and auto insurance policies. These limits usually start at $1 million, as any lawsuit has the power to effectively “shut your lights out” and drain your bank account. If the total liability amount resides at less than your net worth, it’s a good idea to raise your coverage limits. 

What Doesn’t Personal Liability Cover?

Personal liability home insurance won’t cover car accidents, intentional acts committed by you personally, or business liability problems. Many homeowners are particularly concerned with business liability, as they have created and cultivated a way to have a side hustle or growing enterprise from their abode. 

Car Accidents:

Car accident claims always fall under the guise of your auto insurance coverage. Liability car insurance will cover a car accident that sees you causing injury or massive property damage to another party. If you want your coverage to repair or replace your car due to issues such as accidents or theft, you’ll need to purchase collision and comprehensive insurance. Acts of vandalism and severe weather are unfortunately on the rise, and these will need to be covered by collision and comprehensive as well. 

Intentional acts

Intentional acts are not covered by home insurance, as this type of coverage will not pay the medical bills of anyone you injure. If you become involved in a confrontation and injure someone on your property, your homeowners insurance will not pay for their medical bills. Due to rampant inflation in nearly every industry, costs are now so high that being on the hook for these bills would be an extreme hardship.

Injury to People Within Your Household:

Personal liability does not cover injuries to you or people in your household: one example is if you happen to cut your leg while building a skateboard ramp in your garage, it would be your health insurance policy that would cover your medical expenses. 

Impactful Facets Of Business Liability: 

A home insurance policy’s personal liability coverage will not cover problems that stem from any business dealings. If you run a barber shop out of your garage and an employee happens to run the shears across their hand, your home insurance will not cover their medical bills. If a customer trips while grabbing a quick bite or otherwise visiting your business, you would not be eligible for compensation from a personal liability home insurance claim. These cases require general liability insurance, which covers accidental injuries and property damage to others, as well as issues such as damage to reputation and copyright infringement. 

Do Renters Need Personal Liability Insurance?

Personal liability insurance for renters operates similarly to that for homeowners in terms of what is and is not covered. Personal liability insurance for renters will assist with legal costs associated with lawsuits that arise from this variety of mishaps. Coverage amounts will usually start at $100,000, but you may be able to increase or decrease this amount through us here at the Alexander Agency of St Charles. 

Does Personal Liability Insurance Cover People Who Live With Me?

Personal liability can definitely cover those who are living with you, depending on their relationship with you and the terms of your policy. In most cases, immediate family members such as a spouse or child are covered, when shared renters and roommates are not. This has been a hot issue the past few years, as many are renting their spare rooms out to help with rising housing costs. 

From Mishaps to Major Incidents: Comprehensive Home Safeguards

We know that you trust everyone you invite into your home, but the winds of change have blown drastically over the last few years regarding litigation. We specialize in researching and underwriting the policies that allow you to entertain and do business with peace of mind, and fully assist you when the going gets tough. Contact us today to add another vital layer of protection for your family and your future, and build a worry-free existence for those dearest to you!