What Is Homeowners Insurance Personal Liability?
Accidents don’t just happen in your car, and when they happen in your home, they can still be costly. Fortunately, liability coverage in your home insurance* helps protect you and family members who reside in the home. We’ll discuss what you need to know about homeowners insurance personal liability coverage, how much you should have and what can be covered.
What is covered and not covered by home insurance liability?
Homeowners liability insurance covers situations where you or a member of your household has caused unintended damage to a neighbor’s property. For example, if a tree that you’re cutting down on your property falls on your neighbor’s car, you could be held liable for the cost to repair any damage. In instances like these, your liability coverage would cover any claims made against you. Another example of where liability coverage could play a role is if your dog bites a friend visiting your home. It’s difficult to explicitly write a list of instances covered by home insurance liability, as this type of coverage depends on the circumstances of the situation. However, you can get an idea of what may be covered by looking at what isn’t covered. In most homeowners liability insurance policies, the following aren’t covered:
- Intentional acts
- Business pursuits
- Professional liability
- Ownership, maintenance, use loading or unloading of an excluded vehicle, watercraft or aircraft
- Damage to property rented or occupied by an insured
- Bodily injury or property damage to any resident of the household other than a Residence Employee
- Bodily injury to any person covered by workers’ compensation
- Transmission of a communicable disease
- Sexual or physical abuse
- Vicarious liability imposed on a parent for the use of an excluded vehicle, aircraft or watercraft by a minor
Do you have enough homeowners liability insurance?
The basic limit for homeowners insurance personal liability is $100,000 per occurrence. However, this may not be enough to fully cover you in the case of a large liability claim. How much liability insurance you need can depend on your financial situation and assets. If you have a lot of assets to protect, you should carry a liability limit in line with those assets. Exactly how much liability coverage you need can help be determined by a financial adviser. At Amica, we typically recommend carrying at least $300,000 in coverage. This would also qualify you for a personal umbrella policy, which can provide you with an additional amount of liability coverage. Coverage from an umbrella policy can provide an extra layer of protection if damages exceed the underlying homeowners personal liability limit.