This is the 4th part of our Home Insurance Basics Series
Liability Protection
Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. So, if your son, daughter (or even your dog) accidentally ruins a neighbor’s expensive rug, you are covered. (However, if they destroy your rug, you’re out of luck.)
The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit stated in your policy documents.
Liability limits generally start at about $100,000, however, we recommend that you increase your limits to $300,000 or $500,000. If you have significant assets and want more coverage than is available under your homeowners policy, consider purchasing an umbrella policy, which provides broader coverage and higher liability limits.
Your policy also provides no-fault medical coverage, so if a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. This way, expenses can be paid without a liability claim being filed against you. It does not, however, pay the medical bills for your own family or your pet.
Contact us at 770-339-4333 or danny@dknighitinsurance.com for help with your home and/or auto insurance.