Home Liability Insurance

Homeowners commonly worry about their houses being robbed, destroyed by fire, or damaged by wind or hail, but physical perils are not the only threats to your financial well-being when you own a home. Lawsuits can also be a homeowner's worst nightmare. In fact, your chances of getting sued for a personal injury that occurred on your property are far higher than your house burning down. For this reason, home liability insurance is a standard component of any homeowners policy. This optional coverage will insulate you from the financial consequences of personal injury lawsuits.

Liability Home Insurance: What It Is and Why You Need It

If someone suffers an injury on your property, you may be held financially responsible for the injured party's medical expenses as well as any "pain and suffering" damages the court may see fit to assess. For instance, if your mail carrier slips on your front walk and suffers an injury or is attacked by your dog, you will most likely be held liable for the ensuing expenses. This coverage protects you from potentially costly legal judgments when accidents like these happen in or around your house.

Without this protection, one serious injury sustained on your property could jeopardize all of your assets, including your savings, home, and retirement funds. You will also have to pay your own legal fees during the litigation process. With this protection, however, your policy will pay for any judgments against you, up to the limit of your coverage, as well as your legal defense.

Deciding on Coverage

Standard policies usually come with a certain amount of liability coverage, but you can always raise the amount if you require additional protection. You may want to consider upping your levels if: