One Common Mistake Could Cost You Thousands If You Lack Personal Liability Insurance

We live in a world of litigation, but you can cover yourself for the costs of claims against you where you have caused injury or damage to someone else.

Do I need it?

We may not think about it much, but unfortunately there are risks all around us and therefore potential claims. What if your dog bites a neighbor? What if a guest has an accident in your home? Or a tree falls on them?

Homeowner’s policies

You can get a stand alone policy, but most standard homeowner policies will already include limited personal liability insurance. They will cover claims against you or family members who live with you, for bodily injury or property damage to others caused by an accident away from, or on your property. There will be a financial limit per claim, and homeowner policies usually start at around $100,000 per event. You are likely to need more cover than you think though, unless you are in a position to pay any claims out of your own pocket. Cover can usually be increased in exchange for higher premiums.

Umbrella policies

If you want an extra layer of protection for claims that could exceed the limits of your existing policy, you could look at an umbrella policy. This will take up the slack once the limits under your main policy are exceeded, cover additional areas, and apply to incidents worldwide.

Exclusions

Intentional acts, business related incidents, accidents covered by auto insurance or worker’s compensation claims are excluded under personal liability polices, but unlike other property related policies, there isn’t an initial deductible amount from the insurer’s payout.