What is liability insurance and why would I need it?
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What is liability insurance and why would I need it?

There’s a lot more to liability coverage than just protecting you if someone gets hurt in your home or business.

Liability coverage is perhaps the most misunderstood component of homeowner or tenant insurance. Most people know that this type of coverage insures you, should a guest or visitor sue you after being injured in your home, whether or not you were at fault, as long as the injury was accidental, and they felt that you were, in some way, legally liable for what happened.
However, there’s far more to liability coverage than just that.

Liability insurance covers your defense, court settlement, and supplementary expense legal costs, and also extends to lawsuits involving incidents beyond the walls of your primary residence to virtually anywhere else in the world you might be living temporarily.

You’re also covered if you are sued for causing damage to your rental unit due to an occurrence such as a kitchen fire, or accidentally burning down your entire apartment or strata building. Other covered incidents might include: unexpectedly hitting a pedestrian while riding a bicycle; bumping into someone while walking, causing that person to fall and break an ankle; or even participating in a fun baseball game and hitting a ball that injures a spectator. The possibilities are endless, but the coverage is limited, of course, to the amount of insurance you purchase.

The possibilities of liability protection are endless. The coverage is limited to how much insurance you purchase.

Your home liability policy doesn’t cover everything. Liability that involves a motor vehicle of any kind, or an intentional act, or a contractual agreement, is not covered by your home liability insurance. In addition, damage to property you own, lease, or rent for more than a limited period of time is exempt, as is injury to anyone living with you, except an employee of your residence.

When you purchase homeowners, condominium, or renters insurance, be sure that you fully understand the liability coverage component of your policy. Talk to your Murrick Group insurance agent for further clarification or if you are faced with a lawsuit for which you believe you are covered.

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