One of the most important factors of a Home insurance policy is the Liability coverage provided. If you're planning to buy a homeowner's insurance policy, it's better to be aware of the liabilities of home insurance. In a home owner's insurance policy, the liability coverage is divided into two categories as follows:
1. Personal Liability: This section of liability coverage protects you (as a house owner) as well as your family. It extends to your appliances, technological devices, clothing and jewelry. An important point to remember is that the insurance company pays for the repair or replacement of these items, as per their current value. That means that if your five year old television set is damaged, the insurance company would pay you an amount equivalent to its worth when it was damaged. It also provides coverage over a lawsuit or claim. However, this claim should be made by a person who got injured or whose property was damaged in the premises of your property. Personal liability coverage will also compensate for the charges in case some person files a lawsuit against your name. However, this liability coverage wouldn't cover accidents related to business or car accidents.
2. Medical Payment: The next Liability coverage section covers all the medical expenses. However, the medical expenses inferred here don't imply your hospital expenses or your family's medical expenses. This section actually covers the costs of treating those people who have injured themselves in your property. An important point to note is that this coverage is not affected by who is at fault for the accident. This coverage is only provided for non-family members.
In the US, a homeowner's insurance liability coverage is generally kept at $100,000 to $300,000. However, this also depends on the deductible you are ready to pay as well as the terms and conditions of the insurance company. If needed, you can even ask for a higher coverage than $300,000, at a higher premium. Frivolous as it may seem, it can be a very intelligent decision in the long run. Medical expenses can go very high and keep accumulating for years on end, if there is a serious injury. Lawsuits and claims would also be very expensive and personal injury cases can keep dragging ahead, thereby increasing your legal expenses. The insurance company would pay for all of this, but after taking into consideration all the expenses, it would sum up to more than your insurance limit. Whatever the case maybe, there is no doubt that a homeowner's insurance liability is very useful, even tough your premiums will increase.