Homeowners insurance is broadly understood as a coverage for damage to home and personal property due to covered cause of loss. In addition to such coverage, homeowners insurance provides an important coverage called “personal liability insurance”. Personal liability insurance is about financial protections for you and your family members. It covers bodily injury or property damage sustained by others which you or covered member of your family is legally liable for.
Be aware that your pet is also defined as a covered family member. For example, if your dog bites a person, the medical, legal, and other indemnification expenses will be covered by your personal liability on home insurance. Other common examples of personal liability claims are:
• Home accidents
• Falling trees
• Intoxicated guests
• Injured domestic workers
In addition, personal liability coverage is NOT limited to incidents occurring at the home.
While the cost of home reconstruction can be estimated using various tools, it is impossible to guess the cost of liability claims. It is important to set your limits wisely.
A standard homeowners insurance provide a maximum limit of $500,000, and additional coverage can be obtained by purchasing an umbrella insurance.