This is part two of our post answering the question, “How much home insurance is enough?”
Coverage E – Personal Liability
Personal liability represents Coverage E on a standard home insurance policy. This coverage helps shield against financial damages when you are at-fault for a third-party’s injuries or property loss. As a policy-holder, you decide how much coverage you want, although we typically recommend a minimum of $100,000 to $300,000. Without the right coverage, your income, savings, and assets could be at risk if you are sued.
Types of Loss
Personal liability covers most injuries and property damage loss with a few exceptions for events like car and boating accidents. Insurance extends to you, members of your household, and your pets wherever you may go – not just at your home. For example, Wisconsin is among the top ten states for dog bites. With a national average of more than $37,000 per claim, personal liability insurance could save you tens of thousands of dollars if your usually docile pet suddenly attacks a person or another pet.
Other common losses include:
- Injuries on your property
- Damages to hotel rooms
- Injuries caused by bicycle accidents
- And more
Coverage F – Medical Payments
Injuries can happen anywhere – even in the safety of your home. If a guest is injured while visiting your home or while on your property, medical payments coverage can help pay for the stitches, x-rays, doctor’s office visit, or other medical bills. This coverage usually provides between $1,000 and $5,000 of benefits, but the payment is not contingent upon the fault of the homeowner.
Many homeowners add additional coverage to their standard insurance policies to help customize their home insurance according to their needs. You may have endorsements on your policy if you are vulnerable to specific risks that the general population is not, such as coverage for a home business or a high-value asset not fully covered by your personal belongings coverage.
Here at Wolfgram Insurance, we recommend some endorsements to nearly all homeowners. For example, water backup and sewer coverage is not a part of a standard insurance policy, but there is an endorsement that can protect your home against this type of hazard. Other common endorsements include inflation guard protection and replacement cost coverage for personal belongings.
Beyond Home Insurance
When accidents result in tremendous property damage, permanent disability, or even a fatality, it is not unusual for judgments to reach seven figures – an amount that even the highest personal liability limit is unlikely to cover. Instead of losing your savings and assets to a major lawsuit, umbrella insurance can provide additional liability protection when you need it most, safeguarding your family against financial ruin.
Umbrella insurance is supplemental liability coverage that pays more than the limits on your primary coverage. These policies typically come with a minimum of $1 million of coverage, although higher limits are available. Costing an average of just $200 per year, this is an affordable way for homeowners to better protect against unexpected events.