Personal liability coverage on your homeowners policy protects you financially if someone is injured on your property or if you accidentally cause damage to someone else's property. It pays for medical bills, legal fees, and court judgments, up to your policy limit. Most standard policies include $100,000 in liability, but this is often not enough.
Separate from liability, your homeowners policy includes medical payments coverage — typically $1,000 to $5,000 — that pays for minor injuries to guests on your property regardless of fault. If someone trips and needs a few hundred dollars in medical care, med pay handles it without a lawsuit or formal liability claim. It is a goodwill coverage designed to resolve small incidents before they escalate.
A serious injury on your property — a pool accident, a fall from a deck, a dog bite requiring surgery — can easily generate medical bills and legal claims exceeding $100,000. If a judgment exceeds your liability limit, you are personally responsible for the difference. Your savings, your home equity, and your future wages could all be at risk. Higher liability limits — $300,000 or $500,000 — cost only slightly more per year and provide significantly better protection.
For those with significant assets, an umbrella policy adds an additional layer of liability protection — typically $1 million or more — over both your homeowners and auto policies. The cost is modest, usually $200 to $400 per year for $1 million in coverage, making it one of the best values in insurance.
Increase your liability limit beyond the default $100,000 and consider an umbrella policy if you have assets to protect. At Truscott, we evaluate your liability exposure based on your property, activities, and net worth. Request a Truscott policy checkup and we will make sure your liability coverage matches the real risk you face.
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