Did you know that homeowner’s insurance covers more than just your home? Homeowner’s insurance usually covers liability claims, medical payments to a third party, and legal costs if a liability claim is brought against you. My last post talked about dog bites. Well, even if your family dog bites someone, your homeowner’s insurance will likely pay their medical costs and your legal costs if they sue you. That is what homeowner’s insurance is for.
Homeowner’s insurance may also cover you even if you get into trouble outside the home.
According to Insurance.com,
Most standard homeowners insurance policies will provide coverage for damage to your home (and many of the items in your home) caused by:
Fire and lightning
Ice and snow
Homeowners insurance also provides coverage for liability claims, medical payments to third parties, and legal costs if a lawsuit is brought against you. The most common amount of liability coverage included in a homeowners policy is $100,000, but you may need much more, depending on your circumstances
If you think that this type of coverage may not be enough, you should consider an umbrella policy. I will discuss umbrella policies in my next post.