Homeowners insurance is made up of multiple types of coverage. One of those coverages is personal liability coverage. This article provides a basic guide to understanding what liability insurance covers and its value.
What does personal liability insurance cover?
Personal liability insurance provides financial coverage in case someone is injured on your property. This type of policy offers coverage to you and the members of your household.
For example, imagine a visitor falls and is injured in your yard or home. If you’re found to be at fault for this injury, liability insurance covers the claim.
Is personal liability insurance required for homeowners?
Personal liability insurance isn’t a requirement for homeowners. However, mortgage leaders will require loan borrowers to purchase this insurance to protect their investment.
For example, let’s say someone has an accident in your home and decides to sue you. They could possibly go after your home as an asset. Lenders have invested in this asset, so they don’t want to compromise their stake.
Do renters need personal liability insurance?
Many rental companies will require tenants to get renters insurance including liability coverage. This covers the same perils as standard liability insurance for homeowners.
Accidents happen. Having liability insurance covers you and your household when they do. Even though liability insurance isn’t a requirement, having it can save you from paying out of pocket in the case of an emergency.
About the Author
Debbie Caldwell
When you first meet Debbie Harris-Caldwell, you are immediately drawn to her charming Welsh accent and the twinkle in her eye. The well-traveled transplant from Wales is quick to set you at ease and time spent with her promises to be time well spent.
Debbie has been a real estate agent for 40 years and takes great pride in her customer service skills. "I make myself available to my customers when they need me, whether it's on a Sunday Evening or after their long day at work. I make my schedule fit theirs. I also keep my customers updated on everything happening with their listings or purchase, I am their conduit for information." She has built a business following her key principles of clear communication, attention to detail, client advocacy, and comprehensive knowledge of the area. Debbie comes to every new transaction with positive energy, determination, a strong understanding of the currents driving the market, and the expertise that comes from a lifetime of experience. She knows the importance of marketing and whether a home is for sale for $200,000 or for $2 million, she always has professional photography done and creates a listing presentation that best shows off her customer's home.