Home Insurance – Understanding Personal Liability Clauses

Home insurance is an umbrella term that describes a bundle of policies that protect various areas of home ownership and liability. One such clause is the homeowners liability, or personal liability coverage. The liability cover is a crucial part of your home insurance so take a moment to read through these few points that could protect you in case of accident.

What is Homeowners Liability?

Homeowners liability provides protection for the homeowner in case of accidents which may happen in the home or on the property that lead to injury or damage to property. You’ll find this coverage included in every home insurance policy from Home to Condo, and even Tenant insurance.

What Does it Cover?

The personal liability portion of your home insurance package covers the cost of defending a lawsuit launched by anyone who may have sustained an injury while in your home or on your property. This could also be an unexpected event where you were proven to have been liable.

Bodily Injury Liability

As well as covering legal fees, this policy will provide relief for medical treatment, dental work, ambulance services, hospital costs, funeral costs (gah), x-rays, and a whole host of related procedures and services. These injuries resulting from slipping on a icy sidewalk, a dog bite, and even someone who has had a few drinks and trips on a rug, can sue you for damages.

Policy Limits and Exclusions

The extent of the coverage provided is up to you when you apply for insurance. The most common Homeowners liability covers damages and costs up to $100,000, however, with legal costs and rising claims, some industry associations are recommending a minimum of $300,000.

Another factor to consider are exclusions. No policy covers everything, so it’s up to you to inquire as to what those exclusions are. Some items to consider would be if you have any valuable art that could potentially be damaged, or if an employee is injured somehow in your home or on your property, you may not be covered if they decide to take action. There are many more situational exclusions that you certainly should ask your insurance broker about.

If you have any other questions about the personal liability component of your home insurance, please contact us today.