Some people think that a Homeowner’s insurance policy is just to protect one’s home and personal belongings. Believe me; it is so much more than that. Homeowner’s insurance also provides Liability Coverage. This means that if you are found to be negligent in your actions or inaction, your Homeowner’s insurance would respond to this type of loss. Believe it or not this coverage will follow you where ever you go in this world. That’s why we call it “worldwide coverage.”
Let’s say for example you are vacationing on Cape Cod and you rent a Kayak for the weekend. While Kayaking along the coast you do not notice a fellow vacationer snorkeling nearby. All of the sudden the kayak slams into this person’s head as he is rising to the surface, causing severe damage. Any kind of reasonable litigation costs, as well as any judgment assessed to you by the courts resulting from this accident would be covered under the liability coverage provided by your Homeowner’s insurance.
Perhaps maybe you have decided to pack up your golfing equipment and head to play the links at historic St. Andrews Golf course in Scotland. On the 9th tee you misjudge the distance between you and the foursome playing in front of you and your tee shot slams into the head of one of the players. Guess what? Your Homeowner’s policy will provide coverage for this negligent act.
Perhaps you don’t own a home. You might ask yourself if you need to be a homeowner to get liability coverage. The answer to that might surprise you. Absolutely not! If you are renting, you can purchase a Tenants policy to protect you personal belongings and your personal liability.
Liability coverage on both a home and tenants policy can be as low as $300,000 and go as high as $1,000,000. The difference in premiums could be as little as $30 a year. Having an additional $700,000 of coverage for $30 extra a year sounds like a bargain to me. Better to have the coverage and not need it, than to need it and not have it.
We live in a society where people sue at the drop of a hat. You never know what may lie just around the corner that you are not expecting. That’s why there is Liability insurance.
If you would like to know more about Liability insurance or Personal Umbrella Coverage, make sure to call any of our FBinsure offices or your local independent agent today.