If you've recently purchased a home, you're likely coming across decisions regarding insurance. Most people are aware that they need some type of home insurance policy. However, a lot of new home buyers aren't quite sure what it means. Home insurance is intended to protect one of your most important assets. Yet, different policies can offer different types of coverage. Beyond the standard protections, you should consider limiting your legal liability through additional coverage.
Most policies offer some sort of protection against damage to the home. The type of coverage has a lot to do with the particular risks in your geographical location. Most policies will protect against fire damage, but may vary in the types of natural disasters covered. The large majority of lenders will require some type of hazard insurance during the life of the mortgage.
Liability Lines of Coverage
Damage from mother nature is not the only kind you should fear. New homeowners should also be concerned with limiting their legal liability in regard to the property. Whenever someone becomes injured on your property, you could be liable. Even a trespasser may have a right to sue in such a scenario. To prevent having to pay money damages out of your pocket, a liability policy is necessary. Once in effect, the insurance company will be required to provide you with legal representation if a personal injury lawsuit occurs.
Damages Covered by Liability Policies
A successful lawsuit can make a homeowner responsible for many types of damages. Your liability policy will dictate which are payable by the insurance company. Some types of damages may still be assignable to the homeowner. For example, a liability policy may not cover an intentional act. A homeowner will likely have to cover the damages for his or her own intentional acts against another party. However, the insurance company may still provide legal representation in such a matter. You just can't expect them to pay the damages if you lose the case.
Most liability policies will cover damages caused by an accident or negligence. This means you can expect both legal representation and financial coverage for these situations. A typical example is a slip and fall case. If someone is injured on your property, the policy will protect you. On the other hand, if you get into a fight in your home, and the other party is injured the policy will not pay the resulting damages.
Making a Decision on Insurance
When you are ready to buy a policy, consider purchasing just enough insurance to cover the potential liabilities. Most homeowners don't need every single line of coverage offered by the insurance salesperson. You can find out what is reasonable to purchase in your situation by consulting an experienced attorney. Spencer and Collier, PLLC can review your options with you to ensure you have an adequate amount of liability insurance.