Let’s say your dog bites the mailman or your tree falls on the neighbor’s car, and you get sued. Your first instinct may not be to look to your homeowner’s insurance for relief, but it should be among your first thoughts. Personal liability coverage for home insurance can cover the cost of litigation in these situations and more.
When does liability coverage for home insurance kick in?
As this encompasses a broad range of possibilities, here are some examples of when you can look to your personal liability coverage under homeowner’s insurance for relief:
In such situations, your homeowner’s insurance can cover the cost of your lawyer and any settlement you are ordered to pay, up to the limit on your personal liability coverage. I's important to note that, while family members and pets can benefit from the coverage portion of your homeowner’s policy, they must be explicitly listed on the policy for protection.
Selecting limits of liability insurance
If the value of your assets exceed the standard limit of personal liability coverage on your homeowner’s policy, the limit can be raised. This, of course, raises premiums a tad, but the increase is likely smaller than you would guess. Increasing liability limits by $500,000, while varying by insurance carrier, rarely adds more than $50 to the annual premium. If you were to find yourself in court over a dog bite or fallen tree with everything you own at stake, the extra premium would be money well spent.
Optional umbrella coverage for home insurance
This extra umbrella insurance is pricier than the built-in personal liability coverage to your home insurance, but you could rest easier knowing your assets have full protection. The amount of the premium is variable by provider and level of risk. Essentially, if you are deemed as low-risk to file a claim, you pay less. If you are deemed high-risk or have previously filed a personal liability claim, you pay more for protection.
Finding the best deal on home insurance
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.