There are plenty of reasons to buy a home insurance policy. Having one in-force protects your savings from the financial damages experienced after any number of covered incidents and also gives you a means to replace missing or damaged personal property. But there is one aspect of home insurance that is just as vital as the structure and contents coverage, but talked about much less often, and that is liability protection.
What Is Liability Protection?
You are liable for the medical and property damages that others experience in your home or on your property, unless those damages are caused by the individual’s (or another’s) negligence. While it may not happen often that people are injured in your home, it only takes one incident to leave you with a bill for medical expenses, lost wages and damages that could bankrupt you.
Home insurance allows you to relax in the knowledge that your insurance company will field the claims up to the policy limit, once you have paid the deductible.
What Accidents Are Covered?
It is impossible to list all the incidents that might be covered by your home insurance policy for two reasons.
1. There are an impossibly high number of possible situations that could result in an accident within your home.
2. The situation must be assessed by an adjuster to ensure that it is an insurable incident.
Some of the situations that could result in a request for damages include:
- A neighbor slipping and falling on your patio.
- A dog bite one of your neighbors receives when visiting your home.
- A guest suffering a burn during a backyard cookout.
As you can see, the possibilities for injuries are endless, and that’s what makes home insurance such a vital product. But this complex coverage requires two separate sections in your home insurance policy—Personal Liability and Medical Payments to Others.
The personal liability section of your home insurance policy covers the damages that you would be obligated to pay for any bodily injury or property damage that occurs on your premises. Bodily injury could mean an injury, illness, disease or sickness. For example, if someone breathes in mold spores on your property and falls ill, he or she could have a claim against you.
In addition, any damage done to tangible property that belongs to an invited guest of your home falls under this portion of your policy. That damage does include loss of use, as long as it was not being used for business purposes while at your home.
But just because someone makes a claim for damages against your home insurance, that doesn’t mean that the insurance company will automatically begin making payments. If the claim goes to court, your insurance policy likely guarantees payment for your legal representation.
Medical Payments to Others
The damages discussed above do not refer to medical payments for treatment as a result of bodily injury, as that is covered under the medical payments to others portion of the policy. Medical expenses incurred within three years of the insurable incident would fall under this section. It is important to note that this does not pay for medical treatment if an accident or injury occurs to someone living within the residence.
No matter how unlikely you think the possibility of liability exposure is for you and your family, it is still a vital coverage to carry. Just one afternoon of innocent fun for your kids and their playmates could result in a financial burden that spans years and has no limit. And even if it wasn’t your fault, there is still the expense of a court battle to consider. Home insurance policies with liability protection are vital for keeping your financial future as safe as your home keeps your family.
To make sure your Georgia home insurance policy is up to par, call us at 877-997-2478 today!