Memorial Day is right around the corner, and with it the traditional “start” to summer fun.
And that usually means two things for most of us — time to fire up the grill and have friends and family over for summer barbeques, and time to hit the open road to visit friends and family as well.
So why is the start of summer a good time for reviewing your liability coverage?
Homeowners liability coverage and your risk exposure
You may or may not know that homeowners liability coverage is designed to protect you against accidents in or around your home or elsewhere on your property.
home or on the property.
And there are generally two components regarding liability coverage:
- property damage
- medical payments to injured persons
Say, for example, that a family member’s car gets damaged while visiting at your home for one of your summertime barbeques. Well, the liability portion of your homeowners insurance would pay for the damage caused to his or her car. And let’s say that a friend attending the same party had one too many beers and slips down your back stairs injuring his knee. The liability portion of your homeowners insurance would handle the medical bills once he files a claim against you.
Now, if you think these two examples are far fetched, they’re not.
In fact, this sort of thing happens everyday.
For example, Just a couple of months ago my wife’s friend was attending a family wedding and a car full of guest headed to the same wedding driving in front of her ended up in a bad accident. Three people were hurt and had to go to the hospital for observation.
And who’s insurance got sued?
That’s right, the person who owned the car involved in the accident.
3 Reasons for checking your liability coverage
In the examples outlined above it’s important to note that your policy will make those payments, provided:
- the claim against you is below the limits outlined in your policy, and/or
- the circumstances surrounding the claim are not excluded in your policy
Which means that any claim against you above you policy limits means you will have to pay out-of-pocket to make up the difference.
And should the circumstances surrounding a particular claim mean that it is excluded from coverage, you’ll be paying that bill yourself.
So what are the three reasons for review your policy?
- entertain during summertime (pool parties, barbeques, own a trampoline)
- serve alcoholic beverages when guests visit
- own a boat and routinely take friends or family on the water
Each one of these situations could result in a claim being filed against you. What’s worse, each of these special situations may be excluded from a standard homeowners insurance policy.
Exclusions are important.
There can be many exclusions outlined in your policy, and many can have a list of exceptions.
It’s important that you read your policy to learn what is covered and not covered. And that’s precisely the point. Your homeowners policy does not cover all situations for which you or a family member may be legally responsible for causing bodily injury or property damage.
Sadly, many people unknowingly place themselves at risk by reducing their policy limits or having too many exclusions in their policy in an effort to reduce their premiums.
As you can image there’s more to getting a homeowners insurance quote than taking 15 minutes (or less) on the phone.
Looking to save on your homeowners insurance?
Save time and aggravation with a free, customized, quote comparison from qualified insurance providers. It only takes a couple of minutes so why not enjoy peace of mind by getting the coverage you need.
Get your FREE, no-obligation homeowners insurance quotes today.
Or you can search through our list of homeowners insurance providers and find a local insurance agent who can help you get the coverage you need.
Either way the choice is yours…