If you own a home, you probably spent years planning and saving for the purchase. Your homeowner’s insurance helps you protect that investment of time and money. While you may already know how homeowner’s insurance protects your belongings, you may not be aware that it can also help protect you from personal liability claims. 

If you or someone you’re responsible for causes harm to other people or their property—if your child throws a ball through a neighbor’s window, for example—you can be found negligent and held liable for financial damages. You may also be held accountable for harm or damage caused by things you own, such as your pets.

Your homeowner’s insurance can protect you from catastrophic loss when a person files a lawsuit or a claim against you. Your policy covers the cost of your legal defense and, if you are found to be legally liable, will also pay any damages up to the amount covered by your policy. Homeowner’s liability coverage applies anywhere—even off your property—if you or a member of your family causes an accident; however, this type of insurance does not apply to automobile accidents or other excluded activities.

While all homeowner’s insurance policies include a basic amount of personal liability coverage—usually $100,000—basic coverage may not be enough. The amount you need depends on your personal situation. We suggest that you purchase liability insurance equal to at least two to three times the value of your assets.

Be sure to get a more complete description of liability coverage, or if you are a current homeowner, discuss whether your liability limit fits your needs.

This article is reprinted with permission from Liberty Mutual Group. For more information please call Stephanie Johnson 860-659-4111 ext 539.