Home insurance includes liability coverage. Here are some of the claims for which the coverage may apply.
The liability coverage protects you for damages that you or your home might cause to others. For example, the insurance will come to your rescue if your tree falls and damages your neighbor's roof. The coverage can also help you if you accidentally burn down your neighbor's storage shed while burning trash in your home.
Injuries to Guests
Injury claims against you or members of your household are also covered by your liability coverage. For example, if someone slips and falls in your home, your home insurance liability coverage will pay for the person's medical treatment plus related damages. Another example is if an electrical fault in your home causes a serious electrical shock to a friend during a party.
Injuries and Damages Caused by Pets
Liability coverage is not restricted to damages or injuries that your home or loved ones might cause; even injuries or damages that your pets might cause are also covered. For example, the insurance will cover you from claims arising out of dog bite accidents. The coverage will also kick in if your dog chews your neighbor's expensive furnishings.
Injuries to and by Employees
Your home insurance coverage also covers your domestic workers. The coverage will help you pay for damages if your domestic employees get injured in your home or if your domestic workers cause injuries or damages to other people's properties. An example of a covered injury is if your babysitter trips and falls on your torn carpet. Another covered injury is if your gardener leaves a sharp tool in the front lawn, and the tool ends up causing injuries to a guest.
Injuries by Intoxicated Guests
You can also rely on the liability portion of your home insurance if intoxicated guests harm each other in your home. Say you are holding an end-of-year party with an open bar. If an intoxicated guest goes overboard with their flame-throwing prowess and hurts another person, your home insurance coverage will pay for the damages.
Cost of Defense
If someone sues you for liability, it is not just the cause of the damages that you have to be worried about. The cost of defending the lawsuit can also ruin you financially because it can run into thousands of dollars. Fortunately, your liability coverage also extends to legal defense; as long as the lawsuit is based on a covered risk, the insurer will pay for your legal defense.
As you can see, liability coverage is a critical component of your homeowners insurance coverage. Thus, consider boosting the liability coverage to amplify your protection against liability claims.