Home Liability Insurance: Everything You Need to Know

Home liability insurance, also known as personal liability insurance, is a type of insurance coverage that protects you financially in case someone is injured or their property is damaged while on your property. In other words, it’s an insurance policy that covers liability or damage that you or your family members cause while on your property or elsewhere.

What does home liability insurance cover?

Home liability insurance typically covers the following:

Bodily injury

Home liability insurance covers bodily injury if someone is hurt while on your property or if you accidentally injure someone off your property. This includes medical expenses, lost wages, and pain and suffering. For example, if a guest trips over a rug in your living room and breaks their arm, your home liability insurance would cover their medical expenses.

In some cases, bodily injury coverage may also cover injuries caused by your pets. However, some policies exclude coverage for certain breeds or have limits on the amount of coverage available for pet-related injuries.

Property damage

Home liability insurance also covers property damage if you or a family member accidentally damage someone else’s property. This includes damage caused by your pets. For example, if your child throws a ball and breaks a neighbor’s window, your home liability insurance would cover the cost of repairing the window.

Legal fees

If someone sues you for bodily injury or property damage, your home liability insurance will cover your legal fees, including court costs and attorney fees.

Medical expenses

If someone is injured on your property, home liability insurance may also cover their medical expenses. This includes expenses for doctor visits, hospital stays, and other medical treatments.

What is not covered by home liability insurance?

Home liability insurance typically does not cover the following:

• Intentional acts of harm
• Business-related liability
• Criminal acts
• Motor vehicle accidents
• Damage to your own property

Intentional acts of harm

If you intentionally harm someone or damage their property, your home liability insurance will not cover you. For example, if you punch someone in the face during an argument, your home liability insurance will not cover the cost of any legal fees, medical expenses, or damages awarded in court.

Business-related liability

If you operate a business from your home, your home liability insurance may not cover any damages or injuries related to your business activities. In this case, you may need to purchase separate business liability insurance.

Criminal acts

Home liability insurance does not cover any criminal acts or illegal activities. For example, if you are sued for assault, your home liability insurance will not cover you.

Motor vehicle accidents

If you or a family member causes a motor vehicle accident, your car insurance will typically provide coverage for any bodily injury or property damage. Your home liability insurance may provide additional coverage if the accident happens on your property, such as if your car hits a neighbor’s mailbox.

Damage to your own property

Your home liability insurance only covers damage or injury to other people or their property. It does not cover damage to your own property, such as if you accidentally knock over a vase in your own home.

How much home liability insurance do I need?

The amount of home liability insurance you need depends on your individual situation. Homeowners should consider the following factors when determining how much coverage to purchase:

• The value of your assets – If you have a lot of assets, you may want to purchase higher liability limits to protect them in case you are sued for damages.
• If you have a pool or trampoline – Pools and trampolines can increase your risk of liability claims, so you may want to purchase higher liability limits if you have these items.
• The size of your property – If you have a large property, you may want to purchase higher liability limits because there is more opportunity for accidents to happen.
• Your risk tolerance – If you are risk-averse, you may want to purchase higher liability limits to protect yourself from potential liability claims.

How much does home liability insurance cost?

The cost of home liability insurance varies depending on a number of factors, including:

• Your location – Certain areas may have higher liability risks, which can affect your premium.
• The amount of coverage you need – The more coverage you need, the higher your premium will be.
• The value of your assets – If you have a lot of assets, you may need higher liability limits, which can increase your premium.
• The deductible you choose – A higher deductible will lower your premium, but you’ll pay more out of pocket if you have a claim.

How do I purchase home liability insurance?

You can purchase home liability insurance as part of a homeowners insurance policy or as a stand-alone policy. Most insurance companies offer home liability insurance, so you can shop around to compare rates and coverage options.

Conclusion

Home liability insurance is an important type of insurance coverage that can protect you financially in case someone is injured or their property is damaged while on your property. When purchasing home liability insurance, it’s important to consider your individual situation, including the value of your assets, the size of your property, and your risk tolerance. By purchasing the right amount of coverage, you can have peace of mind knowing you are protected in case of a liability claim.