Homeowners
insurance provides homeowners with coverage for the loss of the home and personal
belongings, as well as liability protection. Today, we will discuss liability
protection.
In a nutshell, the liability portion
of a homeowners insurance policy covers you against the costs associated with
injuries or damage caused by your property or family. Typically, limits to liability
protection begin at $100,000. This protection extends anywhere in the world. Liability
protection does not cover the cost of damage done to your property or injuries
suffered by people living in your home. Nor does it apply to accidents or injuries
caused by automobiles.
Liability coverage provides
no-fault medical coverage if an injury occurs on your property. The injured person
can collect on the medical bills resulting from the accident if he or she submits
them to your insurance company. This coverage applies only to people that do not
live in your home. For example, liability protection will not pay the medical
bills if your spouse breaks an arm as a result of slipping on ice on your porch.
It will, however, pay the medical bills if a delivery person breaks his or her
arm in a similar accident on your property.
Secondly,
liability protection covers the cost of damage done by family members living in
your home to another person's property. For example, the insurance company will
pay for the repair, if your son kicks a soccer ball into your neighbor's window.
However, the liability portion of the policy will not pay for the same damage
if your son were to break your window.
The third
part of liability protection covers the insured against lawsuits for injuries
or property damage caused by you, your family, and your pets. If you are sued,
liability coverage pays for both the cost of a court defense and awards given
up to the limit of the liability portion of the policy.
Lastly,
if you have a substantial net worth, your assets could be at risk if you are sued
and the court award exceeds policy limits. If this describes your situation, you
should consider purchasing an umbrella policy. For more information, please see
the article Umbrella Liability
Coverage written by Suzanne Lako.
The Henssler
Financial Group recommends that you take the time to look over your homeowners
insurance policy, understand the limits of your liability coverage and purchase
an umbrella policy if deemed necessary. For more information regarding this topic, please contact The Henssler Financial Group at 770-429-9166 or comments@henssler.com.
All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing.
Henssler
is not licensed to offer or sell insurance products and this overview is not to
be construed as an offer to purchase any insurance products.
