Every home insurance policy includes personal liability coverage. It’s the coverage that is designed to protect you financially if you’re determined to be responsible for damages or injuries to other people. If you have a family, personal liability also extends to household members. This means, if your teenager accidentally damages your neighbor’s fence and it’s a covered loss, you will be covered. Personal liability is not only standard in your home insurance policy, but it’s also included in a condo, renters or landlord policies.
While this cover provides a broad range of incidents, it does not cover everything. It’s primary purpose to protect you against damages you cause to others. Here is a quick summary list of the types of things that are and are not covered:
|What’s covered||What’s not covered|
|Injuries caused to others||Automobile accidents|
|Damages caused to others||Intentional harm or damage to others|
|Lawyer costs, Lawsuits & legal fees||Injuries or & damages caused to you|
|Dog bites (this can be excluded to save money)||Claims related to your business|
When you purchase homeowners, condo, or renters policies, they most commonly offer three limits selection for personal liability coverage: $100,000, $300,000, and $500,000.
When determining the right liability limit for you, a good starting point is to matches or exceeds your net worth. For example, if after adding up your savings, equity in property, retirement funds and other personal assets you determine your net worth is roughly $200,000, you should select at least $300,000 in coverage limits. Selecting $100,000 would be insufficient. If you determine your network is greater than than $500,000, and want to purchase more protection, some carries do offer up to $1,000,000 in personal liability limit. However, you should actually consider purchasing an umbrella insurance policy to extend your limits. An umbrella is offers a broader protection and will include both personal and auto insurance liabilities.
If you have a “risky” property, you may need to purchase more protection. For instance, if you have a pool or trampoline, you simply have a greater risk of an accident. In fact, your home may actually be an “attractive nuisances,” exposing you to the risk of random child entering your property to play, only to become injured and making you liable. So, if you have a high risk property, or one possibly considered an attractive risk, consider raising your personal liability coverage limit to meet that risk.
To reduce the mitigate attractive nuisances risks, you need to take steps to make the property more secure or safe. First, you need to have the proper fencing around your pool, including a a locking gate. You local regulations may require this, and your home insurance may not insure you if you don’t meet the basic standards for fencing your pool. Not all insurance carriers will insure your property if you have an outdoor trampoline, if they do you will be required to secure the trampoline with a net. Regardless, if you own a trampoline this is just good sense.
The average cost of a homeowners policy is based on your homes replacement cost value and the limits you select. In this way it is very unique to the individual. However, our average home insurance policy sold pays and estimated $101 per month when purchased through our insurance carrier partners. However, personal liability coverage is typically the least expensive part of a home policy. Generally speaking, an insured can typically increase their personal liability limit without dramatically raising the monthly premium costs. Want to learn more about what goes into the cost of homeowners insurance.
Once again, your personal liability insurance coverage does not provide benefits for your injuries or damages. This would include death benefits. However, it may provide death benefits to the family of someone who passes away due to an accident on your property. It may even include covering their funeral costs and related expenses.
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IronPoint Insurance Services, LLC is an independent insurance agency licensed (#0G87821) with the California Department of Insurance. We are authorized agents for many A+ rated Arizona, California, Colorado, Nevada and Utah insurance companies. We provide consumers with online, phone, and in-person insurance services through our insurance company relationships.
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