Liability Insurance Basics and Coverage

August 18, 2017

Liability Insurance – Basics and Coverage

Liability Insurance – Basics and Coverage - Liability insurance is an important part of every insurance including the home insurance. Unfortunately, not everyone is aware of its existence and important. Therefore, we have just the right information to help you learn about this coverage and how it makes difference in your life. In general, this coverage refers to particular protection for accidents outside and inside your home that you are liable for that result in property damage and bodily injury. This coverage exists to protect any assets you have covered in event that has caused injury. In short, it comes as financial lifesaver when something happens out of your control.

Liability Insurance – Basics and Coverage
Liability Insurance – Basics and Coverage

Personal Liability Insurance

The personal liability insurance refers to a component of renters or homeowners insurance policy. It covers the damages’ costs that are caused by you or others that are covered by the insurance policy. So, if the damage in your house is caused by someone else not covered by the insurance, this coverage doesn’t apply. Furthermore, personal liability portion also covers the defending lawsuit cost in case you are sued. The amount of the coverage is up to the policy limit. The purpose of this coverage is protecting the asset of yours in case unexpected event happens for which you’re liable.

There are different types that this personal liability coverage covers. Bodily injury is among the covered ones. It means the coverage covers legal responsibility in case someone is injury around or in your home. For example is when someone falls down the stairs. This liability works with medical payments portion in conjunction of your homeowners policy. Here is how the two of them work in conjunction. The medical payments help paying necessary and reasonable medical expenses of the injured ones that are non-residents. Then, the personal liability covers any claims of negligence causing lawsuit or injury due to incident.

The items that are covered with the guest medical include X-Rays, hospital costs, funeral services, prosthetic devices, professional nursing services, ambulance, dental work, and necessary surgical and medical expenses.

The next thing covered by liability coverage is property damage. It covers any damage cost of someone else’s property. For instance, your kid damaged the neighbors’ properties that include window and expensive art piece. Then, this insurance will pay for it.

Coverage Limits

The limit of personal liability coverage is important so you have to carefully set them. In general, the limit is around $100.000. However, this amount of limit is often not enough because with some serious injury or fall, the medical expenses and lawsuit can quickly rise to around $300.000. Therefore, make sure to think about this limit very carefully so the coverage will give you the best help you need when something unexpected happens.

Another important basic about liability coverage is related to the ones covered by this insurance. Usually, the covered ones include family members or other people residing in the home such as employees. But tenants are not covered so make sure to ask your tenants to get their own renter’s insurance policy.
Next Post »
0 Komentar