You buy Homeowners insurance to protect your home from damage caused by fire, flood and earthquake right? While that is certainly correct there is an additional important component of Homeowners policies that you might not think very much about.
Liability. It’s a scary word that we use in a lot of contexts. Many times we associate it with really big things. Exxon had liability for the Exxon Valdez. Tobacco companies for years tried to wiggle out of the liabilities associated with smoking. But what about the liabilities associated with your life?
Cars provide ample opportunities to become liable for damages. But so do homes. A pedestrian trips on a crack in the sidewalk in front of your house and you may be liable. A neighbor’s child slips on your slippery front porch. Your dog bites the mailman. Your son hits a ball right though the picture window of the house next door! All of these are situations that might find you liable for damages. And in all of these cases your Homeowners policy will provide the coverage.
January is a great time to review your Homeowners policy. If you have questions schedule a discussion with your insurance agent. And if you think you don’t have enough coverage it may make sense to get more. It’s a cheap way to protect against damages.
And then fix that sidewalk!