What is homeowners liability insurance?

Homeowners iability insurance explained

Liability insurance is a standard type of homeowners insurance, and it is designed to protect homeowners against lawsuits that can result from injuries or property damage caused to others by the homeowners, their pets or children. Liability insurance coverage pays for the cost of defending a homeowner in court and any awards paid to the other party.

Liability coverage has an off-premises component, meaning that it follows homeowners, and their children and pets, anywhere in the world, and will pay for losses anywhere in the world, not just in the home insured.

The liability portion of a homeowners policy also covers medical expenses if someone is injured in the home, which is a way to avoid having a liability lawsuit filed against the homeowner.

To feel more comfortable with the amount of liability coverage, some homeowners increase the liability limits on the standard homeowners insurance policy. Others decide to purchase umbrella or excess liability insurance.

This type of insurance includes additional coverage for things like libel, slander, or invasion of privacy claims brought against the homeowner.

Umbrella coverage may be worthwhile for homeowners with additional property or savings or other investments that are worth more than the limits of the standard homeowners liability insurance coverage.