What Is Personal Liability Insurance?

What Is Personal Liability Insurance

To protect against the unexpected, many people turn to personal liability insurance, which is usually part of their homeowners’ insurance policy. Personal liability insurance can be the last line of defense in the insurance world. It protects policy owners in the event of a claim of personal negligence, which could result in legal liability. The minimum amount of personal liability coverage is $100,000 per occurrence. There is no deductible specifically for this type of coverage, although it is usually part of a homeowners or general umbrella policy that will have a deductible for claims.

There are two types of personal liability coverage: first party and third party. First party coverage only protect you, the insured. This protects your house and possessions. If something goes wrong, then you file a claim and the insurance company will help to pay for the damages. Third party coverage, the topic of this article, protects you against claims made by other people. They may injure themselves or property, and your insurance company will help to cover their claims.

When Does Personal Liability Apply

An independent insurance agent can explain how this kind of insurance policy can apply in situations. Any time there is a bodily injury or property damage that is caused by an accident on your property, then you will be held responsible. Below are several examples of how personal liability insurance can protect you.

1. A postal service worker falls on your icy driveway, is paralyzed, and sues you for negligence.

2. A child injures themselves on your trampoline or play set after you repeatedly told them to be careful. The parents file a claim under your personal liability insurance to help pay the medical bills.

3. Someone breaks a window to get into your home and cuts himself on the broken glass. Even though he was there to steal from you, he can still sue.

4. You are walking your dog and someone bends down to pet it. The dog snaps at the person and breaks the skin on their hand. The person files a claim to pay for his doctor visits.

Ask yourself the following questions: Do you have people over often? Do your children often invite their friends over to play? Do you own a firearm? Do you hire home cleaning or gardening services? Do you ever have repairmen in your home? Do you own pets? Do you own a car? Then consider purchasing a personal liability policy today.

Reporting a Personal Liability Claim

If someone makes a claim against you, then you need to contact your insurance company. They will send an insurance adjuster to meet with you and discuss the details surrounding the incident. The adjuster will determine whether the claim has merit, then the insurance company will represent you in court.

Choosing a personal liability insurance policy can be a difficult task. An independent insurance agent will discuss the coverage that personal liability insurance provides to a policyholder. With this insurance, they do not need to worry about high costs or legal defense that can stem from a claim of personal negligence, libel, or slander.

An independent insurance agent will answer questions such as, “What are the policy limits and what items are excluded from a policy’s coverage?” Many financial advisers believe that the coverage afforded under a personal liability insurance policy should be about the same as a policyholder’s net worth, and an insurance agent can help a potential policy holder understand what this means for them.

Quality insurance coverage provides financial security and peace of mind to a policyholder. Personal liability insurance can cover the potentially high costs of a negligence, defamation, or other similar lawsuits. An independent insurance agent is ready and willing to help individuals sift through the options for coverage, so that as personal liability insurance policyholders they can be on their way to a financially secure future.

Personal liability explained in a way a football fan would understand >

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Consumer Guide to Home Insurance

Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.

While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.

Jim operates an insurance agent network called Insurance Partners, aggregating agents in the Midwest for over 25 years. He was National Agent of the Year for Metropolitan in 1993 and Midwest Agent of the Year for Travelers in 2011. He served as a founding board member of the Surplus Lines Association of Minnesota.

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