Understanding Home Liability Coverage
“How much liability insurance do I need?”
This is one of the most common questions asked by new homebuyers and individuals interested in a new insurance policy. And as a vital aspect of homeowners insurance, liability insurance is incredibly important to understand.
What Is Liability Insurance?
First and foremost, liability insurance is a means of financial protection for you and your family. As part of the typical insurance system, liability insurance protects you – the insured – from lawsuits and other claims that come within the general coverage of your insurance policy.
As an avenue of self-protection, personal liability coverage offers financial security for bodily injury and property damage suffered by others. In these situations, you are legally responsible for the financial coverage of these individuals and/or their property, especially in the event a lawsuit or similar claim is filed against you. And with over 15 million civil lawsuit cases filed each year, the possibility of a lawsuit is a very real risk.
How Much Liability Insurance is Right for You?
The typical amount of liability coverage spans from $100,000 to $300,000 and includes a package of six types of support, including:
- Dwelling: covers damages to the actual home and attached structures.
- Surrounding structures: pays for damaged fences, garages, etc. not attached to the home.
- Personal property: covers lost or stolen personal possessions.
- Loss of use: covers part of your living costs while your home is uninhabitable or under repair.
- Personal liability: offers financial protection in the event of a lawsuit for injuries or damages to another individual.
- Medical expenses: covers the cost of medical bills for anyone injured on your property.
Though the average homeowners insurance policy covers personal liability claims up to $300,000, this amount is blatantly insufficient when facing a lawsuit where damages run to millions of dollars. By understanding the magnitude of this risk, you’ll understand the necessity of extra liability coverage.
By purchasing an umbrella liability policy or personal excess liability insurance, you’ll be able to supplement your existing insurance policy with the type of financial support necessary to cover a lawsuit or similar claim. For only $250 to $500 a year, you can purchase extra protection in $1 million or $2 million dollar increments.
While purchasing extra protection is a valuable decision for high-net-worth homeowners, having more liability protection is also a good idea for anyone with at least $1 million worth of assets, which could be lost in a lawsuit. Without extra coverage you risk more than just the amount of money in your bank account; your retirement funds, investments, savings and even future earnings and the equity of your home are all on the line if you are sued.
Getting More Coverage is Easy
Come to Taylor-Moore Agency today, and work with one of our friendly agents to create a homeowners policy that is tailored to your specific wants and needs – including extra coverage and much more.
As leaders of affordable homeowners insurance in Northern Vermont and New Hampshire, Taylor-Moore Agency is dedicated to crafting a personal policy that provides the coverage you need at a price you can afford.
Request a quote or give us a call today, and experience the ease and efficiency of working with the professionals at Taylor-Moore Agency.