The intent of personal liability insurance is to protect the insured from staggering financial jeopardy if involved in an event that causes damage to another’s property or bodily harm to others. It is also designed to protect business professionals from overwhelming financial exposure in the event of harm caused to others during the course of business.
Three Common Kinds of Protection Automobile Property and Liability Insurance
All car owners in 49 of the fifty states are required to carry minimum property and personal liability insurance. These are statutory minimal requirements. The amount of required coverage varies by state. Many motorists realize that the state mandated coverage does not offer enough protection to them and frequent by policies known as 100/100/300. This means that they are covered for $100 thousand dollars in property damage for an accident and also covered for $100 thousand per person for medical care per person per accident to a maximum of $300,000 per accident. These coverages also include protection in the case of a fatality.
Homeowners, Condo Owners and Renters Insurance
All of these policies provide coverage in the event of theft or fire in the insured homes. Most policies also include protection in the event someone suffers bodily injury while at your residence. Because this coverage is inexpensive most people who carry this kind of insurance have coverage for $100 thousand in medical payments or death benefits.
Professional Liability Insurance
In addition to professional liability insurance providing coverage for harm done to others by a business professional it also covers the legal expenses attendant to either defending the claim in court or negotiating a settlement.
However, all of the three kinds of policies are usually insufficient to protect high net worth individuals should they be involved in an incident that causes bodily harm or a fatality. Thus, their insurance advisors usually explain how important it is for them to acquire an "umbrella policy" to increase their protection against financial claims.
Personal umbrella liability insurance gives insureds additional liability coverage that covers any excess damage or injury that exceed your auto, home or professional liability insurance coverage. It is known as umbrella insurance, "additional personal" liability and "personal excess."
The more you have the more protection you need as your exposure increases in direct correlation with your wealth. It is best to discuss your personal liability coverage with your insurance advisor.
Ensuring that your biggest asset which is of high priority for you and your family is financially secured by home owners insurance and also equally considering coverages to shield your personal assets. You will not know when and what kind of injuries will be sustained by anyone on your property. You will also not know the heights of damage which will occur or unintentionally being caused by any of your family member. Incidents and it’s severity cannot be predicted and hence a claim over your personal liability and law suits for it. Liability costs are not covered by your home insurance policy to greater extent, hence recommending more coverage on personal liability.
Liability Insurance – Two Types
- Home Insurance Personal Liability: Personal liability insurance covers bodily injury and/or property damage against every claim and law suits causing any accident when on your property or if your personal activities results in any damage or injury at your house. Home Business related damages and loss are not included.
- Home Insurance Medical Payments: Medical Payments coverage is a another form of liability insurance basically covering others to pay for medical treatment of injured at your home or in your property. It includes doctor’s fees, hospital stays, x-rays, and other similar expenses.
Property owners have this huge responsibility of maintaining safe conditions in and around their home to avoid any injuries for people coming home or when on their. There are different categories of people who might visit your property and you will be held liable for any incident occurring and protecting these specific groups of people is major duty of a home owner.
- Invitees: Category of people who are invited by the home owner for general purposes of work at their premises. Contractors and workers are usually labeled invitees.
- Licensees: A person who does not have any relation contractually with the owner of premises but he has the permission to go to the premises is known as a licensee. A licensee is typically considered as a social guest welcome at any residence.
- Trespassers: A person who steps into the premises of another person without any permissions implied by the owner, purely for their amusement or benefit is known as a trespasser. Skateboarders in a swimming pool, not having a finish will fall into the category without any evidence, then the owner exercises a duty in order to avoid injuries to the trespasser.
Home liability insurance is generally included in policies. But it comes usually with $100,000 coverage which is not sufficient when some other person is injured severely. So its always better to play safe by setting $300,000 coverage or even more in case of any accident at your home. This just requires an increase on your premium rates slightly resulting in tremendous peace.