You are undoubtedly aware that your home insurance will cover any damage to your house, but what happens if a visitor is hurt on your property? Let’s say your dog attacks a neighbor. You might have to foot a hefty expense for legal and medical care if your neighbor files a lawsuit against you for the injuries. But worry not.
Homeowners Insurance in Miami, FL, covers these situations through personal liability coverage, which also covers the expense of your defense in court if you are sued. Knowing what personal liability coverage your homeowners insurance plan includes can help you ensure you have the right level of coverage.
How does personal liability insurance for homeowners work?
If you cause someone harm or damage their property, your personal liability insurance will pay for it. If the claim becomes a lawsuit, your policy will cover, up to the coverage maximum, your legal fees and any additional costs that the court determines you to be accountable for.
Suppose someone slips and falls in your house’s flight of stairs and gets injured. She sues you for pain and suffering in addition to medical costs after breaking her elbow. If a court finds you responsible for the injury, your personal liability insurance will pay for your defense costs and the total amount of your policy.
Personal liability coverage is a common feature of a homeowners insurance policy, just like coverage for your home’s construction. However, different companies may offer varying levels of coverage. You can obtain several Homeowners Insurance Quotes for comparison.
Are homeowners required to carry personal liability insurance?
Generally speaking, no legislation requires you to have personal liability insurance as a homeowner. But high chances are that you will need personal liability insurance if you have a mortgage.
Mortgage lenders require hazard insurance, the portion of Homeowners Insurance Coverage that protects your home’s structure. When you purchase homeowners insurance, you may acquire personal liability coverage and hazard coverage.
What does personal liability homeowners insurance cover?
- Damages you or other family members inflict. For example, it can pay for someone’s medical expenses if you or your kids injure someone while playing ball in the park.
- Accidents on your property, for instance, when a visitor stumbles on your walkway and breaks their arm.
- Injuries brought on by your pet, for instance, if a visitor sustains injuries due to your dog biting or jumping up on them.
- Damage to your property that impacts someone else’s property, for example, a tree in your yard tumbles onto the neighbor’s roof.
- Lost earnings of an individual hurt at your house and rendered unable to work as a result of the incident.
- Legal fees in case of a lawsuit.
Exclusions of personal liability homeowners insurance
Del Toro Insurance experts explain the following situations in which homeowners personal liability insurance does not apply:
Auto Accidents
Your auto insurance will cover claims related to auto accidents. For instance, it pays for accidents in which you injure or damage the property of another person.
Liability of Business Activities
For instance, your house insurance will not pay for an employee’s medical expenses if they sustain a cut to their hand while operating from your garage as a woodworking business.
Personal Injury to Members of Your Household
Personal liability does not cover you or your household members’ injuries. For instance, your health insurance should pay medical expenses if you cut your hand while making dinner.
Deliberate Torts
For instance, your homeowners insurance won’t cover the liability for someone you or your family member caused damages or harm intentionally. However, the bills will still fall under your responsibility.
The takeaway
You should thoroughly evaluate your risk tolerance to purchase sufficient personal liability insurance covering all your assets.