What is Personal Liability
You may be asking yourself, what is personal liability coverage on my homeowner’s insurance policy, and is it important?
Yes, this is an extremely important coverage and is meant to protect you and your family in the event of an accident.
Personal Liability coverage on your property policy provides you coverage to pay for claims of bodily injury or property damage sustained by others for which you or a household resident is legally responsible for.
An example of this is, someone falls down your steps due to a loose handrail or your child hits a baseball into a neighbors window breaking an expensive vase.
These are both things you can be held liable for in which your personal liability coverage will help pay for.
What does Personal Liability Cover
Personal liability will cover a variety of situations and help protect you and your family over expenses like
Medical bills resulting from a visitor’s injuries at your home
Legal expenses resulting from lawsuits
Bodily injury or property damage that results from your negligent acts or omissions
Bodily injury or property damage caused by your pets
Another part of your Liability coverage on your homeowner’s policy is Medical Payments to Others. We broke down what medical payments covers in another blog post linked here
Personal vs Premises Liability
Another type of liability coverage that you may see on a property insurance policy is premises liability.
Now, where personal liability protects you and your household members in the event you cause bodily injury or property damage to others regardless of where you are, premises liability covers you only at the listed property address.
Homeowner’s insurance policies do not tend to have premises liability coverage as that is usually used for rental or landlord properties.
What is not covered by Personal Liability Insurance?
Usually, all insurance coverage has some form of exclusions built-in. For personal liability coverage, here are a few common examples of what is not covered:
Bodily injury or property damage caused intentionally
Injuries or damages sustained by you or another member of your household
Liability resulting from a car accident. This is covered by your car insurance.
Bodily injury or property damage arising out of business or professional activities.
How much personal liability coverage do I need?
Homeowner’s insurance policies provide a minimum of $100,000 in personal liability coverage but will have options to increase this coverage to $300,000, $500,000, and sometimes $1,000,000.
The cost is relatively inexpensive to increase this coverage and we recommend no less then $300,000 and certainly more if you can.
Another great idea is adding a personal umbrella policy, this will give you a minimum of another million-dollars of liability protection.
Do you know what limit of coverage you have for personal liability on your homeowner’s policy? If not, make sure you go take a look and verify that you do not have the minimum of $100,000.
Reach out to your insurance agent to see the cost to increase this coverage to better protect you and your family. If you don’t have a relationship with an agent or want a review of your insurance then click the button below to schedule a review with one of our trusted insurance advisors.