Here’s what you need to know about the personal liability coverage included in your homeowners insurance.
Your homeowners insurance can be broken down into four major coverages: property, personal property, loss of use, and personal liability. Because personal liability claims are among the most expensive that a homeowner can face, it’s incredibly important to ensure that you have the right insurance protections in place. But what exactly does your liability insurance cover and do your existing policies offer enough coverage? Here’s what you need to know.
- What Does Personal Liability Insurance Cover?
Personal liability issues arise when guests or other non-members of your household injure themselves or sustains damages while on your property. You can also experience liability issues when you or a home resident is found legally responsible for causing injuries, damages, or other losses to another party. In the face of a personal liability issue, your insurance will offer coverage for third-party medical treatments, property damages, and the cost of your legal defence if you are sued.
- How Much Coverage Do I Need?
Your personal liability insurance is designed to protect your financial assets from costly liability claims and lawsuits. This is why you should carry enough liability insurance to protect the value of your assets, including the following: the money in your checking and savings account, your investments, retirement funds, valuables, and property that you own (including your home).
If you need help determining the value of your assets or ascertaining how much personal liability coverage you need, we recommend you seek assistance from your financial advisor or insurance agent.
- Can I Secure Additional Coverage?
If your homeowners insurance policy cannot offer you all the personal liability coverage you need, you can secure additional protection with a personal umbrella policy. These types of policies offer liability coverage to fill the gaps left by your other personal policies (home, auto, etc.). Securing an umbrella policy will ensure that you have the comprehensive personal liability protection you need.
This is what homeowners need to understand about their personal liability coverage needs. Do you have additional questions regarding your home insurance coverage? If so, please contact an insurance professional at Westwood Insurance Agency today.