Liability insurance agreement on the desk.

Crucial Reasons to Have Personal Liability Coverage

If you own a dog, you have one of the 78.2 million dogs in the United States. As a pet owner, it’s important to know that over 4.5 million people in the U.S. get bitten by dogs each year.

If your dog were to be the culprit, you are responsible for medical bills and other expenses. With personal liability coverage, your insurance will pay for this accident.

Personal liability insurance can cover more than a dog bite. Keep reading to learn the crucial reasons to have this coverage.

What Is Personal Liability Coverage?

Personal liability coverage is part of a homeowners insurance policy that pays for bills if someone gets injured on your property. In general, you should have enough personal liability insurance to cover the value of what you own.

This insurance can cover medical, legal, and repair expenses. Coverage can extend to incidents that occur off your property as well.

For a personal liability claim to get accepted, you’ll have to prove your negligence led to the property damage or injury.

Benefits of Personal Liability Insurance

Personal liability coverage follows a variety of instances that involve property damage or bodily injury. Here are some of the instances covered:

  • Your dog bites a houseguest or passerby
  • A guest gets injured on your trampoline or in your pool
  • Your firearm goes off while you clean it
  • A delivery person slips and falls on your walkway
  • A dead tree in your yard falls and injures someone

The benefits of personal liability renters insurance are that you have coverage in the above circumstances and more.

Another benefit is that if the liability insurance coverage from your homeowner’s insurance gets maxed out from a claim, your personal policy will kick in. This is known as a personal umbrella policy.

Personal Umbrella Policy

A personal umbrella policy, otherwise known as umbrella insurance, is a type of liability coverage that you can purchase in addition to your home insurance.

Some companies offer personal umbrella policies with a maximum limit of $5 million to $10 million. In general, you’ll find these policies offered in increments of $1 million.

For the minimum amount of coverage, you can expect to pay around $300 a year. Most companies will recommend adding umbrella coverage if you have over half a million dollars in assets.

What Isn’t Covered?

Personal home liability insurance does not cover a few incidents. These are some of the very specific incidents you will be responsible for without the help of insurance:

  • Incidents where negligence can’t be proven
  • Injury to a resident in your household
  • Property damage or injury that results from business activities
  • Car accidents
  • Acts of violence that are intentional
  • “Dangerous” dog breed injuries
  • Workers’ compensation

For example, if you hire a contractor to work on your property and they get injured, it won’t be covered. Make sure a contractor you hire has their own workers’ compensation insurance.

Is Personal Liability Insurance Worth It?

Personal liability coverage is the only way to protect you if you are found responsible for someone’s property damage or injury. An umbrella policy in addition to homeowners insurance is a recommended safety net.

If you own a home and expensive assets in your home, purchase an amount of coverage that matches their total value. Without this policy, you are legally responsible to cover the settlement out of pocket.

For more information on the home and different insurance policies, check out the posts on our blog.