14 Feb Do I Have Enough Home Liability Insurance?
Determine if you could benefit from additional liability insurance.
Do you know how much liability coverage you have in your home insurance policy? Many homeowners don’t have nearly the amount they need, and only find out when it’s too late. Your current liability limits may not be enough to protect you and your family from financial disaster if an accident happens. Keep in mind that this is a litigious society, and the unexpected can happen at any time.
In addition to protecting your home’s structure and belongings, your homeowners insurance protects you, the homeowner, from potential lawsuits and insurance claims if someone is injured on your property. This liability portion of the policy is often overlooked when determining coverage amounts. Your liability insurance needs to be high enough to cover your costs if someone comes after you and tries to sue you for all of your assets – including the home itself.
Did you know that if a delivery person falls on your driveway because of the uneven concrete, you could be liable for his/her medical costs as well as lost wages? If a trespasser trips and injuries themselves, even they can file a suit against you (despite their trespassing). Your liability helps to protect your pocket and home in situations like this.
According to the Insurance Information Institute, you should have “enough liability insurance to protect your assets.” A standard policy typically starts with a base of $100,000 of liability coverage but many homeowners have assets north of that figure when you add in retirement accounts, savings, and other investments. Many insurance agents will recommend at least $300,000 to $500,000 worth of coverage with recommendations usually at $1 million or more in higher property value regions. If have items of where injuries can easily occur, such as a pool, hot tub, or swing set, you may want to select higher coverage for peace of mind.