TUESDAY, JANUARY 19, 2021
A home insurance policy is about more than just protection for your dwelling and possessions. It also protects you when you are legally responsible for paying someone because you caused them harm. That benefit comes from a properly designed homeowners liability insurance policy.
Let’s take a closer look at this coverage.
What is homeowners liability insurance?
A situation might arise where a friend, neighbor or even a stranger might allege that you caused them physical or monetary harm. Though you of course didn’t expect these accidents to occur, that doesn’t mean that you aren’t responsible for them. The affected party might even sue you for the costs of these losses. At this time, you can file against your homeowners liability insurance to help you provide them with the necessary compensation.
The benefit of having this coverage is that it accounts for the fact that you cannot eliminate the risk of someone demanding compensation for even a seemingly minor accident. All it all, it makes it much easier for you to respond to someone else’s issue that was a result of your mistakes.
There are several types of third-party losses that liability insurance will cover, including:
There is a chance that someone might get hurt in your home, such as by falling after tripping on a broken step. At this time, because you neglected to fix the step, you might be responsible for the injury. This coverage can pay for that person’s medical bills, lost income and other financial settlements.
You might be responsible for accidentally damaging someone else’s belongings. For example, there’s a chance that when checking on a neighbor’s home while they are on vacation, you leave a faucet running and flood the home. If the neighbor sues you over the accident, then you can compensate them using your liability coverage.
Someone might get hurt in your home, but you might actually not be at fault for their injury at all. However, if this person requests help paying for their medical bills, then this coverage can help them.
Sometimes, the harm you do to someone else might be to their reputation. For example, someone might sue you and claim you libeled them. This coverage can help you pay for any legal fees or other costs arising from the suit.
If you have a pet, then there is a chance that they could bite someone, no matter how well you have trained them. Your pet bite liability insurance can help you compensate the unfortunate victim. However, this coverage might exclude certain breeds.
It’s important to consult with your home insurance agent when putting together your liability coverage. They know how to recommend enhancements and endorsements to your plan to maximize its effectiveness.
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