Home Owner’s Liability Insurance

What Is Homeowner’s Liability Insurance?

What if you’re having a party at your home, and someone slips, falls and breaks a leg? Or your dog bites a neighbor? Or your tree falls and crushes a neighbor’s roof? With homeowner’s liability insurance, you are covered for bodily injury and property damage that’s connected with your home.

What’s covered

The liability portion of your homeowner’s insurance policy provides personal liability and medical payment coverage. Personal liability covers damages to people who are injured by you or your property. It also might pay to defend you or any other insured person named in a lawsuit. Medical payments cover the bills incurred by the injured party.

Typically, homeowner’s insurance provides a standard $100,000 of liability coverage per occurrence. If you choose, you can request more for your policy.

Exclusions

Read the exclusions section of your policy carefully; it details any instances in which coverage may be denied or precluded. For instance, your policy will not cover damages caused by your car or that are related to business activities. It also will not cover intentional injuries and damage or injuries suffered by household members.

For expanded coverage, consider obtaining a personal umbrella liability policy. This type of policy provides a liability limit greater than that which is included in your homeowner’s policy.

The additional layers of protection can protect your assets in the event of a large judgment against you.