Liability Coverage Meaning - Home Insurance

What is Liability Coverage Meaning?

<lingo>Usually a specific part of an overall homeowners' insurance policy, liability coverage is the portion that covers the insured from personal injury or property damage claims by others. These claims can come from friends, family, visitors, neighbors and even delivery people and contract laborers. Claims can occur from an injury sustained on the insured's property like a slip and fall. Claims can also occur from damage to the property of another that occurs on an insured's property. Minimums of $100,000 worth of liability coverage is common with many homeowners choosing to elevate coverage to $200,000, $250,000 or more.</lingo>

Liability Coverage Meaning Briefly Explained 

Most homeowners will have visitors to their property throughout the course of ownership. Many, however, don't consider that they are responsible for providing a reasonably safe and secure environment for those visitors. If a visitor, delivery person, landscaper, neighbor or family member should be injured while on the premises, the homeowner could face a financial claim for liability. 

Liability coverage is meant to protect the homeowner from such financial claims, including any legal fees associated in fighting them. Liability claims could be the result of a slip or fall on a property, especially if the slip or fall may have been prevented with proper maintenance. A visitor falling down a few stairs due to a loose piece of carpeting or an injury sustained in a fall due to poor or improper lighting could be examples of liability claims against a homeowner. 

<twitter>Usually a specific part of an overall homeowners' insurance policy, liability coverage is the portion that covers the insured from personal injury or property damage claims by others. These claims can come from friends, family, visitors, neighbors and even delivery people and contract laborers.</twitter>

Liability claims can be far-reaching, ranging from a dog bite to an injury from a loose, rusty nail. Homeowners should be aware that they will be personally liable for any amount awarded to a claimant in excess of their liability coverage amount. Liability coverage will cover the amount of a claim and legal expenses, and even pay for any claims settled out of court. "Negligence" is often a cause for the filing of a liability claim, if it can be shown that an injury could, and should, have been prevented.  

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