How Home Insurance Can Help Cover Lawsuits

When most people think of homeowners insurance, they often focus on the financial protection it can offer for damage to their property from a covered peril (e.g., fire). However, homeowners insurance has another crucial component—protecting you in the event of potential lawsuits—which can be just as important.

Personal Liability Coverage

Typically included in homeowners policies, personal liability coverage can provide financial protection if you’re responsible for someone else’s injury or damage to their property. For example, imagine a guest falls on your slippery deck and breaks an arm. They sue you for medical expenses and pain and suffering. In this scenario, your personal liability coverage can cover your legal defense expenses and pay up to your policy limit if you’re found liable for the incident.

Other scenarios where personal liability coverage may assist include the following:

• Damage to a neighbor’s property—If you or a household member damages someone else’s property (e.g., a baseball through a window), liability insurance may help pay for damages.

• Swimming pool or trampoline injuries—These recreational items can be sources of injury, and liability coverage can help manage the financial repercussions.

• Dog bites—If your dog bites someone, liability coverage may assist with the legal and medical costs.

Medical Payments Coverage

Another valuable component of homeowners insurance is medical payments coverage. If someone gets hurt on your property, this coverage can pay for minor injuries without establishing fault. This can be particularly useful for small claims, ensuring minor accidents don’t incur significant out-of-pocket expenses.

It’s essential to check your policy, as offerings vary between policies.

Umbrella Insurance

If your personal liability coverage limits are too low, consider the merits of umbrella insurance. Umbrella insurance can offer broader coverage beyond the limits of your underlying liability policies, giving you extra security in case of a lawsuit.

Homeowners Insurance in Littleton, NH

The team at Hunkins & Eaton Insurance Agency can help you understand the extent of your homeowners coverage. Contact us today to review your policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.