What Is the Purpose of Home Insurance Liability Coverage?

• If a guest is injured on your property or if you or a family member who lives with you causes damage to someone else's property, the liability clause on your homeowner's insurance policy will cover you. If your pet hurts a person or a person's property, your liability insurance will protect you, if the animal is not excluded from coverage. Since your home can be at risk when you are sued, your homeowner's policy may protect you from lawsuits of slander, invasion of privacy or malicious prosecution. Read the fine print to know exactly what your policy covers. It should provide protection of a minimum or $100,000 per occurrence, according to the website AskForInsurance.com.
  
  

Does an Incident of Liability Have to Occur on My Property to Be Covered?

• Your homeowner's insurance liability policy will cover you even if you are away from home. If your dog breaks out of your yard, runs to the neighbor's house and damages the landscaping and a fence, and then proceeds to bite someone walking by, your insurance company will pay for the damages to be repaired up to your policy limit. If you take your child to the park to toss the ball around and it breaks the window of a nearby home, your policy will protect you. Neither of these incidents happened on your property, but you can file a claim against your liability coverage to pay for the expenses.
  
  

What Are the Limitations to a Home Insurance Liability Policy?

• Your home insurance liability policy may not provide coverage for intentional acts on your part or a family member. It also will not protect you from injury to another as a result of an automobile accident or business transaction. These policies are separate.
  
  Also, for a covered occurrence, your insurance company will pay only up to the limit of your policy. Therefore, if you have a judgment of $1 million against you and your policy only covers up to $100,000 in expenses, then you will have to pay the difference plus attorney's fees, court costs, loss of work and any other costs.
  
  

What Is Umbrella Liability Coverage?

• Medical coverage is part of the liability insurance clause. It will pay to reimburse someone who is injured on your property or as a result of your negligence. Most medical policies have limits of $1,000 to $5,000. Medical coverage will not pay if you are sued because of someone's injury. An umbrella liability policy will protect you if you or a family member who lives with you hurts someone or damages property due to a motor vehicle accident, at your home or elsewhere. This coverage kicks in after the limit on your auto or homeowner's policy has been surpassed.