This is part two of our post answering the question, “How much home insurance is enough?”
Personal Liability (Coverage E)
If you are sued, will your insurance cover it? Though home insurance liability does not cover every type of lawsuit (things like car accidents and personal injury are generally excluded), it does protect against a wide range of accidental third-party losses for which you or a member of your household is at-fault, including bodily injury and property damage. This includes accidents on your property and those that occur away from your home.
- Hitting a golfer on the course with a rogue ball
- Pet-related injuries, such as dog bites
- A guest who falls down the stairs due to a broken banister
- An injury that occurs when your child runs hits another child with his bicycle
- Accidental damages to a hotel lobby or room when traveling
How Much Coverage Do You Need?
It is important to choose adequate personal liability limits, as you may have to pay for any excess damages out-of-pocket. We typically recommend high limits of at least $100,000 to $300,000, although your coverage needs may vary depending on your assets and income. Talk with an agent here at Feivor Insurance for help determining how much liability protection is right for you.
Medical Payments (Coverage F)
Medical payments coverage is the next section of your home insurance policy. This coverage is not liability protection, nor does it absolve you of any liability for third-party losses. However, it is designed to provide small claims resolutions for minor accidental injuries when someone is injured on your property. There is no need to prove fault or negligence for the injury. Instead, your insurance may pay up to the limits of your policy (usually between $1,000 and $5,000) to cover basic medical bills, such as a doctor’s office visit or the cost of stitches.
Endorsements provide extra home insurance benefits outside of those included in a standard policy. Many homeowners utilize endorsements to better personalize their coverage – particularly if they face specific risk vulnerabilities. Some of the most common home insurance endorsements include:
- Home business endorsements
- Water backup and sewer endorsements
- Inflation guard endorsement
- Replacement cost coverage endorsement
- Scheduled coverage for high-value belongings
- And more
As a homeowner, you can decide which endorsements are right for you. However, certain endorsements, such as the water backup and sewer endorsement, are recommended for nearly all homeowners, as they have the potential to save you tens of thousands of dollars in damages. For help adding endorsements to your home insurance policy, contact our office today.
Beyond Home Insurance
If you have home insurance and perhaps even auto insurance with high liability coverage limits, you might assume you are protected against any possible scenario. The truth is even the maximum coverage may be inadequate to cover the cost of a major, million-dollar lawsuit, leaving you with hundreds of thousands of dollars in excess damages.
Umbrella insurance is extra liability protection that supplements the limits of your primary coverage. It usually extends coverage by an additional $1 million or more, and policy premiums typically start at just $200 per year or less. Talk to an agent here at Feivor Insurance about how affordable umbrella insurance can be for you and how it could protect your income and assets against financial ruin.