If you're purchasing a home insurance policy, you'll likely need to decide on how much liability insurance you want to have. Liability insurance is designed to protect you from lawsuits if someone gets injured while on your property and you are legally responsible for it happening. Here is what you need to know about liability coverage
What Is Personal Liability Coverage?
There are two types of liability coverage you can purchase, with one of them being personal liability coverage. Your personal liability coverage provides protection from injuries and damage that are caused because of your actions, no matter where it happens. You could be involved in an accident while playing sports where you seriously injure a teammate or opponent or cut down a tree that crashes down on your neighbor's garage by accident.
At first, it may not make sense why your home insurance policy covers this type of damage, but the purpose of personal liability coverage is to protect your home. If you were involved in a lawsuit for a major accident that causes a lot of damage, the victim could potentially sue you and your home could be used to pay for the judgment ruled against you in court. Personal liability coverage prevents that from happening.
What Is Premise Liability Coverage?
Any lawsuit that comes up due to you owning property will be covered by premise liability coverage. As a homeowner, it's up to you to ensure that your property is safe for anybody that visits your property. Premise liability coverage is designed to protect you when negligence leads to someone else's injury.
You are likely wondering what is considered negligence on your part that could justify a lawsuit covered by premise liability coverage. In general, it covers accidents that could have been prevented by taking reasonable steps.
For example, if you have an icy walkway leading up to your home, it is your responsibility to salt the walkway to make it safe for visitors, mail carriers, and people delivering packages. If you did not salt the driveway and they suffered a slip and fall, premise liability coverage will protect you from a lawsuit. You would not have coverage for something that is considered an intentional act, such as getting into a fight with someone on your property.
Have questions about either of these two types of liability coverage? Reach out to a home insurance provider for more information.
For more information on homeowners insurance, contact a professional near you.