What is Personal Liability Coverage?

Personal liability coverage is the part of home insurance that financially protects you in the event a guest is injured in your home, or if you or a family member damages another’s property.

There are many ways someone can get hurt while visiting your home. Whether due to accident, negligence, your pet, or some unfortunate event, you can be held liable if you are considered at-fault. What this means is that you can be sued and forced to pay for your guest’s medical bills and other damages. Fortunately, with personal liability coverage, your home insurance will step in and help pay for the legal and medical fees.

Liability home insurance can also provide coverage when away from home. If you, your family members, or your pet damage another’s property, your liability coverage can cover the costs; for instance, replacing the TV you accidentally broke at the hotel or the neighbor’s couch your dog decided to chew up.

Often, the cost to add liability coverage to your home insurance policy is relatively affordable. Combined with the added peace of mind it offers, purchasing liability coverage makes good financial sense for most homeowners.

What Is Covered?

Liability home insurance typically includes coverage for the following:

• Medical bills:  If a visitor is accidentally injured while in your home, liability insurance helps cover their medical costs. Keep in mind that you do not overtly need to cause the injury. You can be found at-fault due to negligence (e.g., if your guest slipped in the bathroom due to a leaky pipe you never fixed).
• Lost wages: If a guest misses out on work or wages due to being injured in your home, liability home insurance can provide reimbursement.
• Death benefits: As unthinkable as it is, there is always the chance that someone could die while visiting your home. Your liability insurance can cover death benefits for that person’s funeral.
• Legal fees: You can be sued if an accident occurs in your home. Liability insurance will help cover any legal fees you incur.
• Damage away from home: If you or one of your family members damage the property of someone else while away from your home, your liability coverage can cover the costs to repair or replace what was broken.

What Is Not Covered?

Liability home insurance will not cover any intentional injuries or damage.

Additionally, your home insurance does not cover injuries suffered by you or members of your household. If you run a business out of your home, liability home insurance will not cover injuries and damages associated with your work.

How Much Coverage Do I Need?

Most home insurance companies offer liability coverage amounts ranging from $100,000 to $500,000. Generally, it is recommended to aim for $300,000 or more in coverage. That said, the specific amount of liability home insurance coverage you need depends on your unique financial situation.

First, be aware that in the event of a lawsuit, you are responsible for any costs that are above your liability coverage amounts. And when sued, your assets are at risk. When you are trying to decide on how much liability coverage you should purchase, consider the value of your assets (such as your home, investments, savings, etc.) and how much the legal fees would cost to protect these assets.

If you need liability coverage amounts that are higher than what is available on your home insurance, consider a separate umbrella policy. For less severe injuries, you can also add medical payments coverage, which helps pay for your guest’s medical expenses if injured in your home, no matter who is at fault.

Now that you have learned about personal liability coverage, protect yourself and save. Shop home insurance quotes from top companies with Compare-Home-Insurance.com!