You know you must have homeowner’s insurance if you’re buying a home. You’re glad to have it in case some disaster strikes your property which results in thousands of dollars of damage. You may even know you have liability coverage as part of your policy, but many people don’t really understand what that means.
Liability coverage in a homeowner’s insurance policy kicks in when an accident happens on your property that was your fault. The most common incidents are slips and falls. Someone may trip over a broken step on stairs or an electrical cord on the floor. They may slip on wet floors and fall and hit their head.
The policy also covers dog bites or injuries from pools, trampolines and other equipment. For instance, a child may fall off a playset and have to go to the hospital. The insurance provider will pay for those expenses.
It’s important to note that you must be at fault. If the victim caused their own injury because of negligence or other issues, you may not be responsible for their situation. When you have homeowner’s insurance, it is the adjustor’s job to figure out liability.
Expenses Liability Insurance Covers
If an injury should occur in your home or anywhere on your property, liability coverage pays for the expenses associated with the incident. This can save you thousands of dollars, which you may not be able to afford. Here are some expenses that are covered under your policy:
Lost wages – if the injury results in time off work, the policy will pay for wages that have been lost
Limits to Coverage
There are limits to coverage in a homeowner’s policy. For instance, if you intentionally hurt someone, the incident will probably not be covered under your insurance. The policy also has limits based on what you set when you took out the policy. If the costs of the incident exceed these limits, you will be responsible for any excess. This is the reason it’s so important to consider coverage when you sign up for a policy and not just look at the cost.
Liability coverage in a homeowner’s insurance policy is an important and often overlooked aspect. You should make sure you know exactly what your policy covers, what to do if an incident should occur and what the limits are. Talk to an agent to determine how much coverage you need to protect yourself, your family and your assets.