What You Need to Know about Home Insurance and Personal Liability

Posted on: 4 March 2015

Did you know that if someone is injured at your house, you could be liable? This person could file a personal injury lawsuit, and you might be responsible for all of their care. This is why it is important that you make sure that you are taking extra precautions to protect yourself and your property. One of the best ways to do that is to make sure that your homeowner's insurance policy covers accidents. Here are a couple things you need to know about homeowners insurance.

Will a Standard Policy Cover Accidents In the Home?

In most situations your standard policy should cover parts of an accident that happened on your property. For instance, most policies have first party coverage and third party coverage. This means that if something happens to the people living inside the house, you should be covered. For instance, if you slip and fall in your own house, you could make a claim through your homeowners insurance to help pay with your medical bills.

If a third party, such as a guest at a dinner party is injured on your property and they sue you, you might also have coverage for this.

Who Does a Standard Policy Cover?

In most situations a homeowner's policy will cover people living in the house, invited guests and employees. So if your nanny or maid is injured while on the property, you could access your policy to help with their medical expenses.

In most situations independent contractors are not covered. For instance, if a plumber is injured on your property, you policy might not cover them. However you can buy an additional policy that will help you to cover anyone that is on the property. This policy will only come into affect if the standard policy has been exhausted. This is why it is important that you have both a standard policy and the umbrella policy as well.

How Much Coverage Do I Need?

It can be hard to know how much coverage you need to protect yourself. Most experts say that personal injury lawsuits stop somewhere between $300,000-$500,000. For this reason, you should try to get coverage that is around this much. However, you can always opt for more to make sure that are protected and that you don't have to pay too much out of pocket.

By following these tips you can make sure that you have a good homeowners insurance policy {from firms like Cambridge Insurance Brokers (Preston) Ltd} that will protect you in the case of a accident at your home.