If you’re like a lot of people, you bought home insurance in Colorado Springs to buy or rent a house. You didn’t think about the amount of coverage you had as much as the cost of the premiums. However, it’s important to know how much liability coverage you’re carrying to protect you and your family.
What is Liability Home Insurance?
Liability coverage in home insurance protects your from being liable for an accident which occurs on your property or is done by your property. If someone comes on your property and is hurt, they can hold you responsible. If some part of your property such as a dog leaves your property and injures someone, you are also responsible.
Many different scenarios can be considered which fit under this kind of coverage. A slip and fall down the stairs or on the sidewalk or driveway, a fall from a trampoline, or an injury in a swimming pool. All of these are examples of when your liability insurance would be necessary.
Another scenario you might not think of is when you have someone doing work on your property. They should carry their own liability coverage, but if an incident is your fault, you may still be responsible.
If you have animals that cause damage to someone else’s property or cause injury, you will need insurance to pay for those expenses. Otherwise, you may be required to pay out of pocket.
How Much Liability Coverage Do You Need?
Think about how much medical expenses can be. If a person is injured seriously, they may require surgery followed by physical therapy and other types of rehab. They may lose out on work during this time. In some situations, especially involving those with traumatic brain injury, the injury may be permanent.
Costs for care can easily be over $100,000 in serious cases. If your insurance coverage is below the amount of the costs, you may be required to pay the difference. The other party may hire an attorney to file a lawsuit against you.
Your home insurance only protects you to the extent of coverage you purchased. Anything above that becomes your responsibility. It’s better to have more coverage than to deal with the repercussions.
You should consider how much coverage you need to protect your assets. You have two options. You can either purchase more home insurance and increase your liability coverage or you can purchase an umbrella policy. With an umbrella policy, your coverage kicks in whenever you reach the limits on the other coverage you have, such as home and auto insurance. For people who are worth hundreds of thousands and millions of dollars, it can be essential. However, even average homeowners may want the peace of mind that more coverage can provide.
If you haven’t checked the liability coverage on your home insurance lately, do it now. Consider if you should add coverage before you need it. The peace of mind is well worth the extra few dollars you will spend.