It"s All Fun And Games Until Someone Loses An Eye
There's this meme that surfaces occasionally on social media sites that goes "It's all fun and games until someone loses an eye; then it's still fun and games, but you just can't see as well." Although there is some truth to most humor, including this poor attempt, the truth that's overlooked is how that lost eye (or whatever injury someone incurs) can be a costly event for a property owner.
The best way to protect yourself from any financial liability stemming from an accident in your home is to get personal liability coverage.
We'll explore the definition of coverage, why you need it, and also dedicate a few words to one of the most overlooked aspects of personal liability insurance.
What Is Personal Liability Coverage?
When you get your house insured, it's normally with an eye towards protecting your property against fire, theft, and other forms of destruction and loss that can impact your finances. But damage to your property and possessions is only part of the story. You need to have personal liability coverage.
Personal liability coverage provides coverage for bodily injury and property damage suffered by other people for which you and your family would be legally responsible for. If someone tripped over a loose board on your stairs, or if your child broke a neighbor's window, your personal liability coverage would kick in. Your insurance company would defend you in the case of a lawsuit, and pay a claim up to whatever the limit of your coverage is, with the norm being $100,000.
Personal liability insurance also covers medical payments to others, in the event of injuries sustained on your property.
That coverage works for you whether or not you're actually legally responsible.
Why Do You Need Personal Liability Coverage?
The problem with accidents is, you can do everything in your power to prevent them, but they happen anyway. After all, you may be a non-smoker who doesn't barbecue, but you take out fire insurance on your house anyways, because you just never can tell.
When it comes to people getting injured on your property, keep in mind that ours is a very litigious society. You can't even count on your friendship with the injured individual to remove the idea of them asking for damage compensation off the table. People are funny creatures, and when pain, suffering, and potential expenses are involved, people's attitudes can change rather quickly.
In addition to the above, consider the scenario where a friend gets hurt on your property and, though they don't want to go after you for money, they have medical bills as a result of the accident and they clearly cannot (and justifiably will not) pay them. In other words, sometimes the injured party has no choice but to seek compensation.
The whole idea of having personal liability coverage is sound when you take into consideration how devastating it can be to not have such coverage, then have a $100,000 judgment levied against you. In a split-second, you healthy secure financial situation can come crashing down.
In fact, it's possible to get personal liability coverage in much higher amounts, like $500,000. Naturally, it costs a bit more, but you get what you pay for. Bear in mind, medical care doesn't come cheap these days.
The Overlooked Insurance Deficiency [p]Most of this article assumes the insurance purchaser is a home owner, but does it surprise you to know that renter's insurance offers personal liability coverage? After all, just because you don't own the property doesn't mean you're automatically off the hook if someone gets hurt. Surely, your landlord isn't responsible for what you have going on in your apartment!
Most renters overlook the idea of getting renter's insurance. A survey by the Insurance Information Institute found that only 31 percent of renters get renter's insurance. Renter's insurance helps deal with personal liability, and of course it also covers you for loss and damage to your possessions.
Shop Around
Naturally, there are exceptions and differences in coverage, depending on the carrier you choose. Take a look at what's out there and choose a policy that best suits you. Don't wait until an accident hits.
The best way to protect yourself from any financial liability stemming from an accident in your home is to get personal liability coverage.
We'll explore the definition of coverage, why you need it, and also dedicate a few words to one of the most overlooked aspects of personal liability insurance.
What Is Personal Liability Coverage?
When you get your house insured, it's normally with an eye towards protecting your property against fire, theft, and other forms of destruction and loss that can impact your finances. But damage to your property and possessions is only part of the story. You need to have personal liability coverage.
Personal liability coverage provides coverage for bodily injury and property damage suffered by other people for which you and your family would be legally responsible for. If someone tripped over a loose board on your stairs, or if your child broke a neighbor's window, your personal liability coverage would kick in. Your insurance company would defend you in the case of a lawsuit, and pay a claim up to whatever the limit of your coverage is, with the norm being $100,000.
Personal liability insurance also covers medical payments to others, in the event of injuries sustained on your property.
That coverage works for you whether or not you're actually legally responsible.
Why Do You Need Personal Liability Coverage?
The problem with accidents is, you can do everything in your power to prevent them, but they happen anyway. After all, you may be a non-smoker who doesn't barbecue, but you take out fire insurance on your house anyways, because you just never can tell.
When it comes to people getting injured on your property, keep in mind that ours is a very litigious society. You can't even count on your friendship with the injured individual to remove the idea of them asking for damage compensation off the table. People are funny creatures, and when pain, suffering, and potential expenses are involved, people's attitudes can change rather quickly.
In addition to the above, consider the scenario where a friend gets hurt on your property and, though they don't want to go after you for money, they have medical bills as a result of the accident and they clearly cannot (and justifiably will not) pay them. In other words, sometimes the injured party has no choice but to seek compensation.
The whole idea of having personal liability coverage is sound when you take into consideration how devastating it can be to not have such coverage, then have a $100,000 judgment levied against you. In a split-second, you healthy secure financial situation can come crashing down.
In fact, it's possible to get personal liability coverage in much higher amounts, like $500,000. Naturally, it costs a bit more, but you get what you pay for. Bear in mind, medical care doesn't come cheap these days.
The Overlooked Insurance Deficiency [p]Most of this article assumes the insurance purchaser is a home owner, but does it surprise you to know that renter's insurance offers personal liability coverage? After all, just because you don't own the property doesn't mean you're automatically off the hook if someone gets hurt. Surely, your landlord isn't responsible for what you have going on in your apartment!
Most renters overlook the idea of getting renter's insurance. A survey by the Insurance Information Institute found that only 31 percent of renters get renter's insurance. Renter's insurance helps deal with personal liability, and of course it also covers you for loss and damage to your possessions.
Shop Around
Naturally, there are exceptions and differences in coverage, depending on the carrier you choose. Take a look at what's out there and choose a policy that best suits you. Don't wait until an accident hits.
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