Homeowners insurance provides financial protection against loss resulting from accidents, theft, and calamities. The majority of homeowner insurance policies offer the following four types of coverage:
(1) liability protection;
(2) coverage for the home’s structure;
(3) coverage for personal belongings;
(4) coverage for additional living expenses;
This article will only talk about liability coverage.
Liability coverage protects you from legal action for harm you or your family members cause to another person’s person or property. So if someone falls in your house or in your yard, liability coverage will pay for any damages sustained by that person. Of course, coverage is only provided where you are legally responsible for that person’s injury. Additionally, liability insurance will also cover any harm your pets may cause to others, even if it occurs outside of the property. So if your dog bites someone, your homeowner insurance policy liablity coverage will pay for any damages resulting from the dog bit. Click here to read more about dog bites.
Of course, coverage is provided up to the limit YOU CHOOSE in your policy. As a homeowner, you should have no less than $500,000.00 in liablity coverage. If you can afford more coverage than $500,000.00, you should get the maximum liablity coverage you can afford. If you are high net worth individual, you should also have Umbrella Coverage.