Most homeowners know that their homeowners insurance policies protect their properties from damage and theft. However, there is a third category of common claims: liability claims. Liability claims occur when someone is injured while on your property. Instead of having to pay out-of-pocket for their medical expenses and distress, you can use your homeowners insurance to cover there expenses. Read on to learn a few important details concerning this type of claim
1. Liability Coverage Applies to a Number of Circumstances
The liability coverage from your homeowners insurance policy protects you during an assortment of circumstances, including unintentional falls, pet-related injuries, and injuries from structures on your property (such as falling trees). Contact your insurance agent or read your policy to determine if there are any exclusions.
When you purchased your homeowners insurance policy, you most likely had to answer a series of questions, including whether or not you have a trampoline, if you own a pool, how the pool is secured, and if your pets have ever injured anyone. These questions are related to the liability portion of your homeowners insurance. Make sure you answer them honestly, as lying about them can potentially compromise your future claims.
2. Liability Coverage Protects You from Lawsuits
If someone gets hurt on your property, it is common for disagreements to arise over the amount of a proper financial reward. The injured individual may try to bring a lawsuit against you to recover money for injuries and emotional distress. Should this happen, your homeowners insurance will cover the lawsuit up to your liability limits.
However, the injured party has to prove that you were in someway negligent and that this negligence contributed to the injury. Perhaps your dog was not properly secured, or maybe your walkways were cluttered.
3. You May Need to Supplement Your Homeowners Insurance
The current liability coverage aspect of your homeowners insurance policy may not be sufficient to properly protect your assets. One option is to ask your insurance agent if you can increase the liability coverage. If your coverage is maxed out, supplement your homeowners insurance policy with an umbrella insurance policy.
An umbrella insurance policy adds an additional level of coverage during major claims. Once you have exhausted the liability coverage levels of your homeowners insurance policy, your umbrella insurance will kick in so that the injured party won't receive your personal assets.
For example, if your homeowners insurance offers $400,000 worth of liability coverage, and the injured party wins a suit for $500,000, the umbrella policy covers the $100,000 so that you won't have to.
For more information, contact local insurance companies or visit sites like https://olynorthwest.com/ .
