Homeowners insurance is what is commonly referred to as a "package" policy, meaning it includes coverage for both property and personal liability. While it's easy to imagine what the property portion covers (the house and the contents inside), it might not be as easy to figure out what personal liability covers. This article offers explanations and examples of what can be covered under the personal liability section of the homeowners insurance policy.
Pays if you're legally liable for causing bodily injury or property damage to someone else or their property. This would include legal costs as well (such as defending a lawsuit). Here are a few examples.
- You're hosting a pool party and a guest suffers an injury while swimming.
- You're golfing and your slice ends up hitting a neighboring house, causing damage (bet you didn't realize this qualified....)
- Your dog gets loose and runs into the road and a passing vehicle hits it. Any animal could qualify here, as long as you own it.
No-fault coverage to pay for medical bills sustained by a visitor to your home. Here's an example: your friend trips over something in your house, falls and breaks a leg, through no fault of your own. Medical payments will step in and pay the medical bills up to the policy limit. We call it "goodwill" insurance.
Pays for any assessment charged against you as owner or tenant of the premises listed by an association or corporation of property owners. For example, you may belong to a homeowners association. In exchange for your monthly HOA fee, you receive the benefit of common services such as snow removal or groundskeeping OR usage of a common space, like a gazebo or clubhouse. If a claim occurs, the HOA will assess an amount to each member to pay for the deductible, for example. This coverage would pay your portion of the assessment. Please note that it may be paid on a reimbursement basis, so you have to pay it first, then submit proof to the insurance company.
Additional coverage that may be provided- check with your insurance company to see if you have these coverages!
In some cases, the homeowner insurance liability coverage will extend to a watercraft. However, the engine size, type of motor and length will usually dictate whether there is automatic coverage. Common limitations include 25 hp or less and less than 25 feet in length. Never assume- talk to your insurance agent to see if you have any liability coverage for your boat. If it's not available, then boat/watercraft insurance would be the solution.
This is a tricky one as there MAY be a little coverage. You're never going to have coverage for your vehicle you drive every day, but there are some types of vehicles that may apply. It depends on the type of vehicle and usage. If the vehicle is not subject to motor vehicle registration, there's a better chance of coverage under the personal liability section. I mention this only so if you have vehicles like golf carts, Gators or even kids low powered cars, you'll know to ask if you have coverage or if you need a separate policy for these items. It's better to know BEFORE the claim, because after is too late.
Pays for damages you are legally obligated to pay as a result of any of the following-
1. libel, slander or defamation of character;
2. false arrest, wrongful detention or imprisonment, malicious prosecution;
3. discrimination based on race, religion, or any otherprotected class;
4. wrongful entry or eviction, invasion of privacy;
5. electronic aggression, including cyberbullying, that occurs through technology or social media by “anyone
we protect” under the age of 18; or
6. humiliation caused by any of these.
While this is not an all-inclusive list, it's a great start to understanding what homeowners liability insurance is and what it covers. Remember to check with YOUR insurance company to see what is covered under your policy. Please contact us with your questions or request your homeowners insurance quote today by calling us at (937) 592-4871 or fill out a quote request on our website. It's quick and easy and gets the process going!