You probably know that homeowners insurance will pay for damage to your home, but it can also cover damage that a member of your family may cause elsewhere. In addition, your homeowners policy will pay for costs associated with injuries to others if a member of your family is found responsible. Family liability insurance is included in a standard homeowners policy.
What Homeowners Insurance Will and Won’t Cover
If an accident or injury occurs because someone didn’t act the way a reasonable person would have, the individual is deemed negligent. Homeowners insurance usually covers negligent behavior, regardless of where it occurs.
Your homeowners policy will pay for medical bills if someone is injured on your property or at another location and a member of your family is found liable, even if the injured person has medical insurance. Your homeowners insurance may also pay for pain and suffering and lost wages. If someone dies as a result of an accident, your policy will cover funeral expenses.
Your homeowners liability insurance will also pay for property damage if a member of your family is found responsible for an accident. For example, if your child hits a baseball and breaks someone’s windshield, your homeowners insurance will pay for repairs.
If a member of your family gets sued for causing property damage or injuries, your homeowners liability insurance will cover legal costs up to the maximum allowed by your policy. That can include attorney’s fees, expert witness fees and other legal expenses.
Liability insurance won’t cover any injuries or property damage caused by intentional bad acts, such as assault or vandalism. A car accident will be covered by your auto insurance policy.
What to Do If an Accident Occurs
If someone is injured on your property or if a member of your family causes injuries or property damage away from home, contact your insurance company to find out if it will cover medical or repair bills. If you get sued, contact your homeowners insurance company as soon as possible to find out if your policy will cover costs associated with the complaint.
Do You Have the Right Insurance Coverage?
Make sure you have a high enough liability limit. If someone is seriously injured and a member of your family is deemed responsible, it can result in a large insurance settlement. If you don’t have enough liability coverage, you will have to pay the difference yourself and may lose your house and other assets, unless you have umbrella liability insurance to protect them. If you use part of your home to run a business, check with your insurance company or agent to make sure you have the right liability coverage.
This article is intended for informational purposes only and should not be construed as professional advice.