Personal Liability Coverage on Homeowner’s Policy

For homeowners, personal liability coverage is usually included in their homeowner’s insurance policy. Depending on the policy and carrier, coverage ranges from $100,000 to $1 million. Usually legal fees, court costs, settlements, and judgments against a homeowner are covered when the homeowner or family member is legally liable for property damage or bodily injury. An additional layer of protection may be provided by increasing the liability limits if offered by the carrier and/or purchasing a personal umbrella policy.

Lawsuits can result from many unintentional incidents in our daily lives and it is impossible to list all the possible scenarios. But examples include guests slipping on walkways, children getting hurt on swing sets at birthday parties, or people getting bitten by the homeowner’s dog while walking or at a park.

Not all situations are covered by personal liability coverage. Libel and slander are generally not covered unless you have “personal injury” included in your coverage. For example, a homeowner posts something defamatory about someone else on social media and is sued for damages. Additionally, some insurance companies may also exclude coverage for certain types of activities or property, such as trampolines and certain breeds of dog.

Homeowners’ personal liability policies can provide valuable protection, but it is always better to avoid accidents or incidents that could lead to lawsuits. Here are a few steps homeowners can take to reduce their liability risks:

Maintain a safe and secure property by keeping walkways clear of debris, repairing any potential hazards such as loose railings or steps, and keeping any potentially dangerous equipment or chemicals out of reach of children.
Make sure pets are properly trained and supervised so they don’t bite or injure others.
Avoid engaging in risky activities or hobbies that could result in injury to others, such as using power tools or engaging in extreme sports on the property.
Purchase additional liability coverage if necessary to provide additional protection beyond the standard policy limits and/or purchase a liability umbrella policy.

Overall, personal liability coverage is a crucial component of homeowner’s insurance. This coverage can offer valuable protection in the event the homeowner or family member is legally or potentially legally liable for property damage and/or bodily injury. A homeowner should read their policy and review it with their agent and/or carrier to understand the coverage limits, exclusions, and responsibilities. Aside from this, they need to take steps to reduce their risk of injury or lawsuit.

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Why Has My Insurance Rates Increased!!!!

By Steven Conway • 18 Apr, 2024

A significant rate increase can be scary and frustrating. You might be wondering why your premiums are going up. My goal is to help you better understand insurance rate increases. The severity and frequency of storms are increasing, resulting in higher claims and loss ratio. Inflation affects materials, labor, medical costs. The insurance companies may adjust their premiums to keep up with inflation and make sure they have enough money to cover future claims. New and increasing risks are emerging, such as cyber security threats driving claims up. Cars are not just more expensive to repair due to inflation in material and labor costs but because of cameras, computers, sensors, and other technology. Regulations like minimum coverage levels and mandated benefits can affect insurers' pricing. As a result of new regulations, policyholders may pay more. Premiums paid by the insured are invested by the carrier to generate income, which offsets operating costs and claims payouts. To stay profitable, insurers might raise premiums during economic downturns. Reinsurance lets the insurance carriers transfer some of their risk to other companies. Depending on market conditions, catastrophic events, and the perceived level of risk in the insurance industry, reinsurance costs can go up or down. To offset reinsurers rate increases, carriers may pass off these increase to the policyholders by raising premiums. Insurance companies evaluate their underwriting criteria and pricing models constantly to assess risk and set premiums. If insurers see underpriced risks or adverse loss trends, they may revise their underwriting guidelines and/or raise rates. Although a significant rate hike can be tough, you can manage insurance costs by doing these things: Compare quotes from multiple insurance companies. Ask about credits and discounts such as affiliation credits, telematics, good grades, defensive driving courses, and low mileage. Choose the right coverage and deductibles for you and your family's needs and exposures. Insurance companies often give discounts when you bundle auto and homeowner's policies. Install safety devices, maintain a clean driving record, or put property security measures in place to reduce your risk profile. Rate increases are influenced by a lot of things, including claims costs, regulatory changes, and economic conditions. Understanding these dynamics and exploring cost-saving measures can make you a better insurance buyer and help you make informed decisions to protect yourself and your assets. Don't hesitate to contact your insurance agent or company if you have any questions or concerns about your premiums.

UNINSURED MOTORIST

By Steven Conway • 14 Mar, 2023

Oklahoma ranks among the highest in the nation for motorists without auto insurance, according to an article in the Journal Record published in 2019. This does not include drivers who only carry state minimum liability insurance which in Oklahoma is $25,000 per person/$50,000 per accident for bodily injury and $25,000 for property damage. What happens […] The post UNINSURED MOTORIST appeared first on Conway Insurance, LLC.