1. What are the impacts of personal liability insurance on a homeowner’s overall coverage?
Personal Liability in Homeowners Insurance
Homeowners insurance can provide a financial safety net if you are the victim of a personal liability lawsuit. Personal liability coverage is a key part of a typical homeowner’s policy. It protects your personal assets if you are sued for causing bodily injury or property damage.
What Does Personal Liability Cover?
Personal liability coverage can help pay for legal costs if you are held liable in a lawsuit or a settlement. This can help to protect your personal assets, such as savings or investments, in the event of a settlement.
Personal liability covering can help to cover the following items:
- Bodily Injury and Property Damage caused by you, your family, or your pets resulting from an accident in your home, or on another person’s property
- Accidental Injury caused by you or your family, in your home or away from it
- Defamation of Character resulting from an inaccuracy, misinterpretation, or personal opinion expressed by you or your family
What Doesn’t Personal Liability Cover?
Personal liability coverage has its limits. Be aware of the following items, which personal liability does NOT cover:
- Intentional Acts you or your family commit, such as vandalism or physical assault
- False Arrest or False Imprisonment including accidents caused by an employee or family member acting in a professional capacity
- Business Activities engaged in by you or your family, such as running a daycare from your home
Understanding your coverage is essential for making sure you are financially protected against the risk of a personal liability lawsuit. Talk to your insurance provider to get more information and make sure your personal liability coverage is adequate.