Understanding Where Homeowners Insurance Ends and Liability Insurance Begins
Your homeowners’ insurance policy is split into two sections. The first section covers damage to your home or property, and provides coverage for possessions (like jewelry) that may be lost or stolen. The second portion of your homeowners’ insurance is your liability policy, which provides for damage or bodily harm sustained by someone else on or through your property. Here are the basics of homeowners’ liability insurance policies.
How Does Liability Insurance Work?
Your liability insurance policy provides a standard amount of coverage for each incident. The minimum amount of this coverage is typically $100,000. This coverage applies to occurrences and injuries incurred for which you are considered legally responsible. Common examples of this are a baseball accidentally going through a neighbor’s window or a guest tripping on a loose paver in your backyard.
Your Policy’s Coverage Exceptions
Your liability policy will have some specific exclusions and exceptions. These omissions are listed and described in your policy. According to 360˚ of Financial Literacy, these exceptions typically include:
Intentional injuries or damage.
Damages caused by your family vehicle(s).
Injuries or damages related to business and professional activities, including activities associated with a home office.
This section of your policy will also include a list of conditions you must satisfactorily meet before your coverage takes effect. Usually these conditions will include providing written notice to your insurance company of any occurrences covered by your policy, and punctually forwarding any information related to a claim, such as summons and notices.
If you are dealing with a personal liability claim, take a look at your policy, talk to your insurance provider, or consult with an injury lawyer, like those at Cummings Andrews Mackay LLP, for more specific information on what your policy covers and your legal responsibilities.
When Do I Need More Liability Insurance?
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