Do I Have Enough Home Liability Insurance?

Do I Have Enough Home Liability Insurance?

Consider your need for liability coverage.

One of the most important components of a homeowners insurance policy is the personal liability section. As it happens, it’s often the most overlooked section, meaning that homeowners are unsure what this coverage is and how it can help them. To make sure you have enough liability insurance, read on.

Your homeowners insurance personal liability is there to protect your assets in the event someone is injured in your home or due to an accident that you cause. It can be a financial safety net, especially because medical costs can quickly spiral out of control. In our litigious society, there is always a possibility that you can be sued for anything, no matter how minor.

Your personal liability portion of your home insurance will cover the cost of damages that you or other people covered by your insurance policy are responsible for causing. It will also cover the cost of defending a lawsuit if you are sued as well as any resulting judgments coming out of the lawsuit, up to your policy limits. It is designed to protect your assets in the event of an unexpected event for which you are held liable.

You should have enough liability insurance to protect your assets. Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available and, increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of liability coverage.

If you own property or have investments that are worth more than the liability limits in your policy, consider purchasing a separate excess liability or umbrella policy.

Homeowners insurance can help you if you do have liability issues. For the homeowners insurance (please open link in a new tab) you need and deserve, contact the team at American Premier Insurance today.