This is part two of our post answering the question, “How much home insurance is enough?”
Coverage E – Personal Liability
Coverage E is an important part of your home insurance policy, as it pertains to your financial protection against potential lawsuits. This is the coverage that shields your personal income and your assets against garnishment, liquidation, and seizure if you are at-fault for a third-party’s injuries or loss. Available coverage may vary from carrier to carrier, but we here at Glass Insurance Center typically recommend that our Lake Geneva area customers purchase the maximum amount of available liability protection – usually at least $300,000 – to better protect against litigation.
By purchasing high-limit coverage, you are protecting your family against a wide range of possible accidents scenarios – including those that occur away from home. With certain exceptions, such as boating and auto accidents, personal liability coverage typically follows you and the members of your household wherever you may go.
The Cost of Claims – Are You Prepared?
Accidents can happen to anyone, anywhere, at any time. If your lawn care provider severely injures himself falling into a hole in your backyard, you may be responsible for the injury. The cost of these claims can vary, but they are often much higher than one might expect. For example, the average cost of a dog bite claim in the U.S. is higher than ever before at more than $37,000. Incidentally, dog bites are also among the most common claims homeowners face, especially here in Wisconsin.
Coverage F – Medical Payments
Coverage F provides limited payment for medical bills dues to accidents and injuries at your home, regardless of fault. Most homeowners choose a coverage amount that will help pay for a doctor or emergency room visit or perhaps even a medical deductible. In most cases, coverage is capped at $1,000 to $5,000, although we here at Glass Insurance Center can help you determine which limit is right for you. Keep in mind that while Coverage F pays for medical bills stemming from injuries on your premises, it is not the same as personal liability protection nor does it relieve you of any liability in an accident.
Endorsements are optional additions to your policy that are implemented to enhance your benefits and personalize your coverage to fit your individual needs. Some endorsements are only necessary for individuals with certain risk exposures, such as policy-holders with home businesses or individuals with high-value assets. Others, however, are recommended to nearly all homeowners. An example would be the ‘personal property replacement’ endorsement that reimburses for the loss of personal belongings based on the replacement value of those items rather than the depreciated value. The team here at Glass Insurance Center will be happy to show you which endorsements could be right for you.
Beyond Home Insurance
A well-constructed home insurance policy can stand against many different loss scenarios, but did you know that even the highest coverage limits may not be enough to fully cover your liability after a major lawsuit? If you face a million-dollar judgment, your $300,000 limit could leave you with hundreds of thousands of dollars in excess damages to pay out of pocket. For these scenarios, we recommend an umbrella policy to help supplement your primary coverage with an additional $1 million or more.
Umbrella insurance is highly versatile, supplementing the primary liability protection on your home insurance, as well as other policies, such as your auto insurance. It is also very affordable – often just $200 per year or less. For more information about how umbrella insurance could shield your family against financial ruin, contact our office today.