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Most homeowners understand that their insurance policy provides compensation for physical damage to their homes, as well as coverage for their personal possessions. However, many do not realize that the  standard homeowner's insurance policy extends much further, with liability coverage that shields you from a broad array of personal injury and other civil suits. By including this vital coverage, your homeowner's insurance policy protects your financial interest in your property, along with other financial assets.

Your homeowner's insurance liability coverage is intended to pay for both property damage and medical expenses suffered by another party in an accident caused by you or a family member. For example, if a guest falls down a flight of stairs in your home, your insurance policy will pay for their injuries and lost work, protecting you from the financial consequences if you were at fault for the incident.

homeowners insuranceHowever, an accident does not necessarily have to take place on your property to be fully covered. Another common example is damage caused to a neighbor's property by your children. Your homeowner’s insurance policy will pay for the damages if your child inadvertently breaks a neighbor's car window, or accidentally injures another child while playing. Even pets are usually covered, protecting you from the financial consequences if your dog hurts another animal or causes serious damage to a neighbor's property.

The standard homeowner's insurance policy contains $100,000 of liability protection, which is sufficient to cover most situations. However, the limit can be raised to $500,000 if necessary. If you own significant assets and need additional coverage, your insurance agent may recommend purchasing a separate umbrella policy with higher liability limits.

 

For over a century, First Insurance Company of Hawaii Ltd in Honolulu has provided a broad array of homeowner's insurance policies and world-class service from highly trained agents who are dedicated to protecting your interests. Follow their Facebook for more insurance tips, call (808) 527-7777 if you have any questions, and visit their website to find an agent today.

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