Many people purchase homeowners insurance because it is required by mortgage companies. You know that the policy protects the building and contents of the home in the event of a covered loss, but you may be unaware of the additional protection afforded by the liability portion of the policy. There are three important things that liability insurance protects you and your resident relatives from.
If you or one of your resident relatives causes property damage, your homeowners insurance may cover that loss. For instance, if your child breaks a neighbor’s window with a backyard home run, your policy may cover it. It also covers damage you do to property while you’re away, meaning your liability insurance Newark DE would cover you at a vacation rental if you accidentally burned it down or damage you cause at a venue where you’re holding an event.
Accidental injuries to others, such as children colliding while playing a game of pickup basketball, would normally be covered. Both the medical bills and pain and suffering are included, as well as the legal defense costs should the incident land you in court. Many policies also cover personal injury from defamation such as libel and slander. However, keep in mind that intentional acts are typically excluded, so incidents like bar fights or crimes committed by otherwise covered individuals are likely to be denied.
Even the most docile dog can bite a guest, and your homeowners insurance may cover resulting damages including injury and death. Even relatively mild dog bites can cause scarring or infections that lead to more serious disfigurements and require complicated medical procedures. Many insurance companies have restrictions on the types of dogs allowed, but if not otherwise excluded, those damages do fall under the liability portion of a homeowners policy.
Homeowners insurance is often something purchased as a requirement. However, now you know that the policy covers much more than just the physical structure you call home.