This is part two of our post answering the question, “How much home insurance is enough?”
Coverage E – Personal Liability
The next section of your home insurance policy probably has nothing to do with your home at all. Instead, this is the section that provides coverage for third-party injuries and property damages when you or someone in your household is at-fault. While there are some limitations – particularly for damages caused by car and boat accidents – personal liability generally provides broad coverage that follows you beyond the four walls of your home wherever you may go.
As an independent insurance agency in Wisconsin, we have witnessed first-hand the detriment a lawsuit can cause to a family that is underinsured. That is why we emphasize having adequate coverage to protect your income and assets against the possibility of litigation. You cannot prevent every accident, but you can take steps to safeguard your family against the financial consequences they incur.
Beware that liability damages can add up very quickly, and often too far more than a homeowner might expect. For example, dog bite injuries are among the most frequently filed claims in Wisconsin, accounting for nearly one-third of all claims. When a pet bites a person or another pet, the average claim cost currently totals more than $37,000. Unless you have adequate insurance protection, you may have to pay the damages out-of-pocket.
Coverage F – Medical Payments
When accidents happen in your home, medical payments coverage ensures the injured guest gets the medical attention they need. This coverage is not contingent upon your liability; rather it automatically pays for medical bills up to the limits within your policy regardless of fault. Typically, medical payments coverage comes with limits between $1,000 and $5,000, which may be enough to cover a deductible, co-pays, or the out-of-pocket costs of a doctor’s office visit.
Optional Coverage – Endorsements
You can modify and build upon the standard coverage in home insurance by adding endorsements to your policy. Endorsements are optional protection designed for specific coverage needs and interests. For example, many people prefer to be compensated for damaged belongings based on the cost of replacing them – not the depreciated value of the asset. A replacement cost endorsement can provide that coverage, making it easier to start over after a major loss.
Some of the more common home insurance endorsements include:
- Inflation guard protection
- Home business coverage
- Water backup and sewer coverage
- Scheduled coverage for high-value assets
For help determining which endorsements could better protect you against a loss, contact one of our team members today.
Beyond Home Insurance
In addition to your home insurance, umbrella insurance can provide broad backup protection if the limits on your personal liability coverage fall short of your financial responsibility in a lawsuit. When damages exceed the high limits on your primary coverage, an umbrella policy can provide an additional $1 million or more in protection – all for an average of just $200 per year or less.
To talk with an agent about how an umbrella policy could better protect your income and assets against at-fault accidents and litigation, contact our office today.