If you are a home owner, you must have a liability insurance coverage. Liability is referred to as an individual's personal responsibility to pay for any kind of damage due to accident or loss. Home owner's liability insurance policy includes the following insurance coverage:
1. Structural coverage: This liability insurance coverage pays for the repair or rebuilding for your home if it is damaged due to fire, vandalism, flood, hurricane or any other natural catastrophe.
2. Personal Property coverage: This insurance coverage helps you get compensation for repair or replacing of your personal belongings including clothing, furniture and fixtures, sports equipments and appliances.
3. Additional Living expenses: Suppose your home is damaged to such an extent that the only option would be to temporarily relocate to some other place till the time your home is rebuilt or repaired. In such a case, additional living expenses liability insurance coverage would pay for your living expenses.
4. Damage to other person's property: Home owner's liability insurance provides protection to the home owners and pays for the damage caused to the belongings or possessions of other people, while in your property. This insurance coverage also pays for the legal fees and court expenses in case a law suit is filed against you- the homeowner.
5. Other person's Injury: Home owner's liability insurance coverage also includes paying for the medical expenses for treating bodily injuries of other person who may be injured while in your home. The insurance pays for the medical expenses including hospital stays, medicine, x-rays, doctor visit and purchase of any other medical equipment such as neck brace or crutches.
6. Umbrella liability insurance: Some insurance companies offer umbrella liability insurance. This insurance provides additional coverage over your primary home owner's liability insurance. The basic home owner's insurance provides coverage only to the extent of insurance amount. Thus, the approximate cost of the damage to your home is more than your insurance amount, the umbrella liability insurance pays for the additional damage.
7. Other coverage: Liability insurance also pays for damage caused by you, your family members or even your pets to other people's property. Typically, majority of homeowner's insurance policies provide liability coverage up to $100,000. However, it is recommended that you buy liability coverage for at least $250,000 to $500,000. You must assess all your assets and then buy the most suitable liability coverage to cover your assets.