Recently, we had a claim where a delivery person from a well-known company slipped while delivering a package on one of our insured's property and was injured.
Although the delivery company bore medical costs to recover the damages. delivery staff through compensation for workers. They returned later and sued our customer's homeowners' coverage for the damages. However, these injuries exceeded medical bills of $ 600,000.
This is because the woman giving birth suffered a serious hip injury when she fell, and she could not walk in the same way and could never run. The deal exceeded $ 796,000. Our insured had to pay something because they had enough coverage to cover the expenses.
However, many people consider it sufficient for them to have Homeowners Coverage of $ 300,000 or less.
But imagine how much our client would have to carry if they had a coverage of only $ 300,000? Or if they did not have coverage for homeowners at all?
This is where you have a higher coverage for homeowners to save you.
Accidents can happen anywhere or with anyone. However, if an accident occurs in your house and it leads to bodily injury or damage to third party property, you may be held liable for it. In that case, you will have to pay medical bills and replacement or repair costs for the property.
But with homeowners' liability protection, you do not have to pay a single penny out of pocket. [1
Liability insurance is an important part of home insurance or rental insurance. It protects the insurer and their family against medical or property damage, as a result of an accident inside or outside their home.
Now that you know the definition of personal responsibility, let's take an example from reality: Suppose you have a guest in your house. As he passes through the garage, he is hit by the falling steps. The guest gets a broken leg and sues you for the injuries. In this case, the amount can be thousands of dollars.
Personal Liability helps you pay for all medical expenses and property damage. Liability insurance also pays the attorney's fee at trial against you.
What does homeowners' liability insurance cover?
Liability insurance usually has three types of cover:
- Personal injury to an individual
- Injury to another property
- Attorney's fee – at court
An important thing to mention here is that this coverage only covers injuries which has happened to other people or their property. This means that it does not pay for the broken window glass in your house. You can buy other commercial insurances to cover such damages.
Who can benefit from homeowners' liability insurance?
Liability insurance covers not only the insurer but also their parents, spouse, children and their pets. Here are some examples:
- Your dog bites someone. This coverage will pay the person's medical bills.
- A tree from your garden falls on the neighbor's car. Liability coverage will pay for the repair of their car.
- Your child hits the glass in the neighbor's window with a ball while playing. Liability insurance will pay for the replacement of the broken glass.
What is meant by liability insurance limit?
Liability insurance limit is the highest amount that the insurance company will pay in the event of damages. Usually this amount is $ 100,000. This means that if the amount of damages is greater than the limit for liability insurance, you must pay the excess amount.
Our experts at Paradiso Insurance suggest that you must have a limit of at least $ 500.00 for homeowners liability to avoid paying more than the amount. You can choose a limit greater than $ 100,000 when you purchase the insurance or increase it whenever you want.
You can also consider getting a personal umbrella cover.
What is personal umbrella coverage?
Umbrella insurance is a type of liability insurance that covers the excess claims in the homeowner's liability insurance. The best thing is that the coverage is not so expensive. You can usually buy $ 1 million umbrella coverage for $ 150 to $ 300.
Always remember that the insurance price depends on what coverage you are looking for. At Paradiso Insurance, our professional team ensures that you get the best liability insurance.
Talk to our experts at (860) 684 5270 or visit our website https://www.paradisoinsurance.com/ for further advice.