Personal Liability Coverage
Personal liability coverage is an essential part of your home, condo, or renters insurance policy. It provides reimbursement for injuries to others or damage to their property that occurs on your property, and it also covers legal fees and settlements. This coverage is important because it protects your current and future assets from being taken as part of a settlement.
What Personal Liability Coverage Covers
Personal liability coverage covers a wide range of situations, including:
- Injury to others on your property: If someone is injured on your property and sues for damages, your personal liability coverage will cover their medical expenses, legal fees, and any settlements.
- Accidental damage to another person’s property: If you accidentally damage someone else’s property, your personal liability coverage will cover the cost to repair or replace it.
- Dog bites or damage caused by your dog: If your dog bites someone or causes damage to their property, your personal liability coverage will provide compensation for medical expenses, property damage, and any legal fees.
- Damage or injury caused by insured household members: If a member of your household causes damage or injury to someone else, your personal liability coverage will cover the associated expenses.
- Claimants’ medical expenses, property damage expenses, and lost wages: If someone sues you for injuries or damage and you are found responsible, your personal liability coverage will cover the claimant’s medical expenses, property damage expenses, and any lost wages they incurred. It will also cover any defense costs.
What Personal Liability Coverage Doesn’t Cover
While personal liability coverage is comprehensive, there are some exclusions to be aware of. These include:
- Intentional bodily injury or property damage: Personal liability coverage does not cover injuries or damage that is intentionally caused by you or a member of your household.
- Injury or property damage caused by high-risk dog breeds: Some insurance carriers do not cover injuries or property damage caused by certain dog breeds that are considered high-risk.
- Injury to another household member: Personal liability coverage does not cover injuries that occur to members of your own household.
- Damage to an automobile covered under auto insurance: If your personal liability coverage is part of your home insurance policy, it does not cover damage to vehicles. This would be covered under auto insurance.
- Injury or property damage related to business activities: If you engage in business activities on your property, you would need commercial liability insurance to cover any injuries or damage that may occur.
If you are looking for more information on commercial liability insurance, you can check out the article linked in the description below.
How Much Does Personal Liability Coverage Cost
Personal liability coverage is relatively inexpensive considering the amount of coverage it provides. The cost typically depends on the amount of coverage you choose. On average, you can expect the coverage to cost less than ten dollars for each $100,000 in annual coverage. For example, a one million dollar policy will cost about a hundred dollars per year or eight dollars a month.
How Much Personal Liability Coverage Do I Need
The minimum amount of liability coverage you can get is usually a hundred thousand dollars. However, most reputable insurance carriers, including the ones we work with at Berry Insurance, will not write coverages that low. They understand that this amount would not be sufficient to protect you considering the potential risks and rising costs of medical care and lawsuits.
We recommend getting at least a million dollars in personal liability coverage. This amount should only cost about a hundred dollars per year but can provide significant protection in the event of a claim. It’s important to remember that while some situations may seem unlikely, they are never impossible. It’s better to be protected than to have to pay astronomical costs associated with these types of claims.
Personal Injury Coverage
Personal injury coverage is an optional add-on to a homeowner’s insurance policy. It covers lawsuits related to libel, slander, or defamation. With the rise of the internet and social media, there are more opportunities for people to sue for defamation based on something posted online or said aloud. If you want to protect yourself and your family from defamation claims, personal injury coverage can provide that protection.
What Personal Injury Coverage Covers
Personal injury coverage covers several types of claim scenarios, including:
- Libel and/or slander: Personal injury coverage provides coverage for any publication that violates a person’s right to privacy through libel or slander.
- Wrongful eviction and wrongful entry: If you are faced with a lawsuit related to wrongful eviction or wrongful entry, personal injury coverage can cover the associated legal costs.
- False arrest, detainment, or imprisonment: Personal injury coverage can cover expenses related to false arrest, detainment, or imprisonment. This includes any legal costs associated with these claims.
- Malicious prosecution: If you are wrongfully accused of a crime and face legal actions, personal injury coverage can provide coverage for associated legal costs.
What Personal Injury Coverage Doesn’t Cover
It’s important to note that personal injury coverage does not give you the freedom to say or do whatever you want without limitations. There are some exclusions and limitations to the coverage, including:
- Intentional libel or slander: Personal injury coverage may not cover intentional acts of libel or slander. It’s designed to protect you from accidental or unintentional defamation.
- Illegal activity: Personal injury coverage does not cover claims related to illegal activities. If you engage in illegal actions, your coverage may not apply.
How Much Does Personal Injury Coverage Cost
Luckily, personal injury coverage is relatively affordable to include in your insurance policy. On average, you can expect a one million dollar policy to cost around ten dollars per year.
Do I Need Both Personal Injury and Personal Liability Coverages
Many people assume that they do not need both personal injury and personal liability coverages. However, it’s important to understand that these coverages are not interchangeable. Each coverage covers different situations, and both could happen to you.
Liability claims and lawsuits can be expensive, with medical expenses and legal fees costing hundreds of thousands or even millions of dollars. We recommend that everyone get both personal injury and personal liability coverage to protect themselves fully. Claims of that size could potentially derail your entire future, so it’s better to be safe than sorry.
How Much Personal Injury Coverage Do I Need
Similar to personal liability coverage, we also recommend a one million dollar personal injury policy. Lawsuits can be incredibly expensive, so having a large buffer is wise. As mentioned earlier, a one million dollar policy should only cost about ten dollars per year.
Umbrella Coverage
In addition to personal liability and personal injury coverage, you may want to consider getting a personal umbrella insurance policy. Umbrella coverage provides additional liability protection beyond the limits of your other insurance coverages. While the limits we recommended for personal liability and personal injury coverage are the minimum we suggest, liability lawsuits can sometimes cost even more than one million dollars.
By getting a personal umbrella insurance policy, you can increase your protection and have a larger buffer for potential claims. This is especially important if you have additional risks such as pools, playsets, trampolines, pets, or other factors that could increase your liability exposure.
To learn more about personal umbrella policies, you can check out our video dedicated to this topic. It’s important to note that while umbrella coverage provides additional protection, you still need to have personal liability and personal injury coverage in place.
Differences Between Personal Liability and Personal Injury Coverage
Personal liability coverage and personal injury coverage are often confused or thought to be the same thing. However, they cover different types of liabilities and claims.
Personal liability coverage provides reimbursement for injuries to others or damage to their property that occurs on your property. It also covers legal fees and settlements. This coverage protects your current and future assets from being taken as part of a settlement.
On the other hand, personal injury coverage specifically covers claims related to libel, slander, or defamation. It protects you and your family in case someone sues you for damage caused by these types of claims, often arising from statements made online or in person.
While personal liability coverage is included in your home, condo, or renters insurance policy, personal injury coverage is an optional add-on that provides additional protection. It’s important to have both coverages as they cover completely different situations, and claims of large magnitude could potentially disrupt your finances and future.
Which Coverage Do You Need?
To determine which coverage you need, it’s important to understand the specifics of each and the importance of having both.
Overview of Personal Liability Coverage
Personal liability coverage is a crucial part of your home insurance policy. It protects you in case someone is injured on your property and sues, covering medical expenses, legal fees, and any settlements. It also covers accidental damage to another person’s property, damage caused by your dog, and injury or damage caused by insured household members. Having personal liability coverage ensures that your current and future assets are protected from being taken as part of a settlement.
Overview of Personal Injury Coverage
Personal injury coverage is an optional add-on to a homeowner’s insurance policy. It specifically covers claims related to defamation, including libel, slander, or wrongful eviction. In today’s digital age, where statements made online can have significant consequences, having personal injury coverage can provide peace of mind. It covers legal fees associated with defamation claims and ensures that you have the resources to defend yourself if someone sues.
Importance of Both Coverages
While personal liability and personal injury coverages are often misunderstood or overlooked, they are both essential for comprehensive protection. Personal liability coverage covers a range of situations, including injuries to others, accidental property damage, and damage caused by your dog. Personal injury coverage, on the other hand, focuses on defamation claims and protects you from lawsuits related to libel, slander, or wrongful eviction.
Having both coverages ensures that you are fully protected against liability claims that could have significant financial implications. While the recommended minimum coverage is a million dollars each for personal liability and personal injury, it’s always a good idea to discuss your specific needs with an insurance professional to determine the appropriate levels of coverage for your situation.