A homeowners insurance policy has two sections- Section I deals with physical damage to your home, other structures, your stuff (contents), and additional living expense. This is the section of the policy that gives coverage for things like wind, hail, lightening, fire, theft, smoke, vandalism, etc… In a property loss, a deductible will apply. Section II gives liability coverage. Liability is probably the least understood part of the policy but is equally important. Liability coverage on a homeowners policy is very broad so let me give you some examples as to how liability coverage responds on a homeowners policy.
You are having a party at your home and a guest slips and falls breaking their wrist. Ouch! No worries—liability covers your guest’s injuries.
You are loading groceries into your car and the shopping cart gets away from you. Crash! You scuff the car next to you. Homeowners liability could apply to fix the damage you caused.
You are mowing the yard and shoot a rock into the neighbor’s window. Liability coverage will pay for the damaged window.
Your child unintentionally causes damage at their friend’s house—again liability coverage would step up.
Homeowners liability applies to all members of your household, not just the named insured. As you can see, it is a very broad coverage and if push comes to shove, a judge may be the ultimate decider of your liability. In that case or any case rather it is important to carry a high limit of liability. In a liability loss, a deductible does not apply. Much like the auto policy, homeowners liability coverage is the least expensive part of the house insurance policy. Renters and Condo policies also provide liability coverage. Many companies offer limits up to $500,000 per occurrence. You can also get a higher limit of liability with an umbrella policy. Basic umbrella policies give an additional $1,000,000 in liability coverage.
Call Hennessey, Thames and Leavitt Insurance Agency today to learn more about homeowners insurance. We take the time to answer your questions to provide unbiased and experienced advice. Call us for a free consultation at 601-636-5560 or visit us on the web at www.leavitt.com/vicksburg. Or stop by our office at 1001 Belmont Street Vicksburg, MS 39180.