Personal liability is a concept that’s easy to understand. Once you figure out what’s covered, what isn’t, and how both relate to your home insurance, personal liability becomes a small security tucked away and forgotten–until you need it, of course. Let’s explore personal liability law in the US and figure out whether it’s worth adding this amendment to your home insurance policy.
What is Personal Liability Law?
To put it simply, personal liability law is having the right to exact retribution from a person or a company because of damages you’ve incurred as a result of their actions. This can also apply to situations where someone has been negligent to such an extent that it’s caused you loss, injury or damage in some way. Personal liability law is really just the right you have to take legal action against someone and force them to take responsibility for their actions.
How Does Personal Liability Fit Into Home Insurance?
Lawsuits abound in the US, from small claims to heavy & enduring civil cases where one person sues another person because of something they did (or failed to do). Home insurance is one of the most foundational ways to protect yourself from personal liability because if anything happens within the confines of your home, you can (and often will) be held responsible.
A good lawyer will always tell you to make sure you have personal liability insurance as a safeguard against frivolous lawsuits pertaining to what happens on your property and within your home. Medical bills, legal costs, and even emotional damage can cost thousands of dollars. If someone decides to claim these expenses from you because they hold you responsible for their incurrences, you can suffer financially.
Home insurance that has a personal liability clause, provides you with cover should anything happen to someone else while they are at your home. It’s a small addition that can be added to your home insurance policy and provides huge cover if a complicated situation like this ever takes place.
What’s Covered Under Personal Liability Insurance?
Regular house insurance covers your home and its possessions. If a fire breaks out or if your home gets broken into, you can start over with a fair amount of capital. But personal liability cover works to protect something else–essentially, your bank balance. Any good lawyer will tell you that if you have visitors at your home–whether they’re friends, family, or complete strangers–you are legally responsible for what happens to them while they are there.
Something as small as a sprained ankle while walking in your garden could result in a medical bill being sent to your door to cover the costs (it’s not unheard of). More complicated situations could include one of your children’s friend’s sustaining a serious injury because they weren’t warned about something that could hurt them.
Dog bites, burns, slips & falls, stolen or damaged items, bee stings… the list goes on. Personal liability makes sure that the costs related to any of these incidents are taken care of without a cent coming from your own bank account.
What’s Not Covered?
It’s also important to clarify what’s NOT covered in personal liability insurance.
- If the damage or injury caused is due to the person’s own negligence or done intentionally. So if someone breaks their iPad at your house and expects you to buy a new one, you can be pretty confident they don’t have a case.
- Any damage caused while conducting business (anything that brings in an income), even if it happens at your home, is considered a business matter, not a domestic one.
- Car damage falls under car insurance, so this is excluded from your personal liability cover.
- Personal injury or injury to anyone living on the property (family, tenants, etc.) is also excluded since these would fall under your standard medical insurance cover.
What’s the Cost-to-Benefit Ratio?
Frankly speaking, the chances that someone will take you to court because of something that happened to them within your property may seem unlikely. But these situations do occur, and they have left thousands of Americans financially ruined as a result.
The cost of personal liability on your home insurance policy is negligible compared to the benefits you’d receive if you ever had to claim. In a way, it’s similar to life insurance. The chances of something happening are low, but if they do, at least you know you’re covered.
Wrapping Up
You may have searched this topic because you’re wondering if you can claim damages. Or perhaps you’re simply doing your due diligence and researching your options for personal liability insurance.
Whichever applies to you, remember that this article provides you with the basics of this topic, and it’s always best to consult an attorney if you want to know how the law applies to your unique situation. Insurance is all about the “ifs” of life, so make sure you’re prepared for whatever may happen to OTHERS while at your home.
