Most homeowners understand the need to insure their property in case of damage due to fire, storms or other catastrophes, but they don't understand the benefits of liability coverage. While property coverage is certainly critical to the financial well-being of homeowners, it's far from being the only important piece of the insurance puzzle.
For example, how do you know you are protected if someone has an accident on your property and decides to sue? The answer to that question is liability insurance, and while you may not know much about it, the good news is homeowners are covered under the typical homeowner's policy.
Below is more information about this valuable coverage and how it can protect you from financial loss.
How Does Liability Insurance Work and Where Is It Excluded?Homeowners liability insurance exists to protect homeowners from unexpected financial loss due to occurrences for which they are held responsible.
It is important to note that liability insurance, like almost all insurance, never covers deliberate acts done to another person. For example, if a homeowner assaults his neighbor, there is no liability protection for the initiator of violence.
However, homeowners liability coverage does provide protection in cases where someone is negligent or commits an unintentional act.
As another example, if a neighbor trips on a garden hose left in the yard of the homeowner, then liability coverage applies. Though the homeowner should've been more careful, the act was not done with malice or desire to harm the neighbor and is coverable.
What Are the Most Common Types of Liability Claims?
It may be difficult for some homeowners to imagine why they might need liability insurance, but the reality is there are situations that can arise unexpectedly and place a homeowner in financial jeopardy. There are several common claims that are made against liability insurance policies, including the following two scenarios.
Slips, Trips, and Falls
Some of the most common types of claims involve someone slipping, tripping or falling on your property. This usually happens when guests are on your property and suffer some type of accidental injury.
In addition, you can be held liable in some instances when uninvited individuals are on your property. For example, if a child is trespassing on your property and is hurt, you may be obligated to pay compensation for injuries suffered by the child.
Fortunately, liability insurance is there to provide funds in case a claim is made against your liability insurance due to a slip, trip or fall, even when it isn't necessarily your fault.
Another common claim against homeowners liability insurance policies involves animal attacks. There are millions of dog bites in the United States every year, and these can often result in a wrongful injury claim or suit. Many times, these incidents occur away from the homeowner's property and can leave homeowners in a difficult position as a result.
Homeowners liability insurance isn't just applicable to the premises, however, as it is a policy that has personal implications. That means coverage follows homeowners, their family and even covers situations where the family pet bites another person. As a result, liability coverage is there to benefit you in your daily life, whether you are at home or not.
If you are a homeowner and aren't sure if your insurance is adequate or if you need help in understanding a policy, be sure to contact the professionals at Livings Insurance for assistance. The friendly staff and agents of Livings Insurance are available to review policies and make recommendations. In addition, they can provide the types of coverage you need, so that you aren't left unprotected.