How Much Liability Coverage Do I Need?
As a homeowner, you have homeowners insurance in Red Hook, NY. You know it protects your home’s structure, all of your personal possessions, and wallet. What many homeowners often overlook is how home insurance covers your liability risks. To help you determine if you need more liability coverage, read on.
What is it?
Homeowners liability coverage is designed to cover the cost of damages that you or other people covered by your insurance policy are responsible for causing. The personal liability portion of your home insurance will also cover the cost of defending a lawsuit if you are sued as well as any resulting judgments coming out of the lawsuit, up to your policy limits. The main purpose of this coverage is to protect your assets in the event of an unforeseen event of which you are considered liable.
Personal liability insurance covers two main types of liability:
- Bodily injury: This covers your legal responsibility when someone is injured in or around your home. For example, if someone slips on ice outside your hours or falls down your stairs.
- Property damage: Covers the cost of damage you do to someone else’s property. For example, if your child throws a baseball through your neighbor’s window and it damages their artwork.
Need more coverage?
If you have assets worth more than your current cover, you may need to add on more protection. For example, if your home policy comes with $100,000 in liability coverage and you have assets totaling more than that, it is worth considering acquiring more cover. To receive reliable protection, you can either increase your homeowners liability coverage or take out a personal umbrella policy. An umbrella policy will kick in once your current home insurance liability has been exhausted, and can offer you $1 million+ worth of coverage.
When you’re looking to protect your property as best you can, contact your insurance professionals at Kneller Agency. Our dedicated experts are ready to assist you with all your home insurance needs in New York.
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