This is part two of our post answering the question, “How much home insurance is enough?”
Coverage E – Personal Liability
Imagine welcoming guests into your home for a baby shower. Your usually docile dog is overwhelmed by the activity in your house and responds with aggressive behavior, biting and severely injuring a party-goer’s hand. The guest experiences nerve damage and will need some reconstructive surgery as well as several weeks off work for recovery and rehabilitation. You are sued for $100,000 in damages, for which a court finds you fully at fault. How will you pay for the debt?
Coverage E on a standard home insurance policy is designed to protect you in such scenarios. This coverage can help pay for legal fees, medical bills, property damages, punitive damages and more up to the limits of your policy. Having adequate coverage could protect your savings and assets against liquidation, as well as your future income against garnishment.
Here at Philleo Agency Insurance, we recommend purchasing high-limit personal liability coverage for your home insurance policy. Many homeowners choose limits between $100,000 and $300,000, although our team can assist you in determining how much coverage is right for you.
Coverage F – Medical Payments
You work hard to keep guests safe in your home. However, if one of them falls down your stairs or slips on spilled water, medical payments coverage helps ensure they get the medical attention they need right away. This section of your insurance policy is not contingent upon fault; rather, the coverage is automatically allocated to third-party individuals who are injured in your home or on your property. The limits for this coverage are usually capped between $1,000 and $5,000, but this is typically enough to cover a doctor’s office visit or a health insurance deductible.
Endorsements add important value to a standard home insurance policy, although these enhancements are optional. That is because endorsements are designed to meet the needs of individuals with specific risk vulnerabilities or coverage needs – not the general population of Wisconsin homeowners.
For example, homeowners who operate a business from their homes may need a home business endorsement to ensure adequate coverage. Likewise, those with high-value assets or collections may need to schedule additional coverage beyond that which is available in a standard homeowner’s insurance policy. Other common home insurance endorsements include:
- Inflation guard protection for your dwelling
- Water backup and sewer protection
- Replacement value coverage for personal belongings
- And more
For help adding one or more endorsements to your policy, contact the team here at Philleo Agency Insurance today.
Beyond Home Insurance
If you are sued, your personal liability insurance is designed to cover your financial responsibility. If you are sued for an amount that exceeds the limits of your policy, however, you may need supplemental liability protection to avoid a major financial loss. Umbrella insurance is an affordable way to protect your income and assets against major lawsuits that exceed your primary coverage limits. Costing an average of $200 per year or less, a typical umbrella policy provides homeowners with an additional $1 million or more in liability protection.
This coverage is generally flexible and can be applied to claims filed against your home insurance, as well as those filed against the liability coverage on other policies, such as your auto insurance. If you are ever faced with a million-dollar lawsuit, your umbrella insurance could prove to be the most value policy in your insurance portfolio, essentially protecting your family and your future against financial ruin.
For more information about umbrella insurance or to request your free quote, contact our office today.