WEDNESDAY, JANUARY 31, 2024
Homeowners should take steps to protect their finances and property from various incidents and perils. However, this process may often include looking outward toward potential risks that could impact other parties, such as guests, neighbors and passersby. After all, bearing liability for another party’s losses could lead to costly lawsuits and catastrophic financial consequences.
What Is Liability Insurance?
Liability insurance may be available to various parties through several insurance products. For homeowners, individuals and families, this type of coverage is often retained through homeowners insurance policies, which typically include a personal liability coverage component. By acquiring and maintaining this type of coverage, homeowners and other insureds listed on their policy may be able to access critical funds and resources in response to incidents affecting other parties.
What Does Liability Coverage in a Homeowners Insurance Policy Cover?
Homeowners insurance policies can often be customized to suit a policyholder’s unique needs, circumstances, preferences and budget. As such, liability coverage may not always be included in every policy. Still, most homeowners insurance arrangements will contain this type of coverage. As such, claims may be submitted in response to the following types of incidents:
- Bodily injuries—If a third party is injured in an incident for which a homeowner is responsible, such as if a guest is injured falling down the or if a passerby slips on an icy sidewalk, coverage may help pay for their medical expenses and other financial losses.
- Property damage—The liability coverage portion of homeowners insurance may also help insulate policyholders from the financial ramifications of being at fault for other parties’ property damage. For example, if a homeowner starts a fire or cuts down a tree that damages their neighbor’s property, their policy may help pay for repair costs.
- Personal and advertising injuries—While this part of personal liability coverage may often require homeowners to purchase an endorsement, it can provide valuable financial protection from the financial ramifications of personal injuries and reputational harm, such as slander or libel.
How Much Does Liability Coverage Cost?
Homeowners may be quoted various price points for liability coverage depending on their unique circumstances. When assessing risk levels, determining insurance needs and exploring appropriate coverage options, insurance companies may consider the following criteria:
- Number of insureds
- Attractive nuisances (e.g., swimming pools, firepits and trampolines)
- Prior claims history
- Policy details (e.g., coverage limits and deductibles)
Get the Right Coverage
With over 30 years of experience serving individuals, families and businesses in the Sumter and Summerton, South Carolina, areas, the dedicated team at Dixon Blackwood Insurance Agency Inc. is well-equipped to help homeowners understand and secure appropriate liability insurance. Visit our website or call one of our offices today to learn more.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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