Why would I want personal liability coverage? What does it cover?
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Asked July 27, 2010
Liability insurance protects you against the costs associated with the actions or lack of actions by you, your visitors, and your property. Homeowners insurance has a personal liability section that describes exactly what is being offered on your policy. In general you are covered against, for instance, accidentally hitting a baseball through a neighbor's window, or a friend slipping on your sidewalk and breaking a leg.
Lawsuits have become commonplace in the modern world, and your best friend might turn against you when there is a large monetary settlement involved. Because of this, it is important to have enough insurance to protect your assets. If the personal liability clause of your home insurance policy is not sufficient, look into an umbrella policy or an individual personal liability policy.
Unlike other types of claims, personal liability claims do not have a deductible. A person's broken arm can be treated right away, even if you are strapped for the cash to pay a doctor. Deductible amounts will apply to any property damaged, but not to physical injuries sustained.
Without liability insurance, any injury or lawsuit is an out of pocket expense. If the claim in a suit is for more than you have the cash available to pay, your property, even the home itself, may be forfeit without sufficient insurance coverage. At an average cost of less than $100 for every $1,000,000 insured, it is easy to see how having insurance is well worth the expense.
Answered July 27, 2010 by Anonymous