Homeowners insurance is made up of multiple types of coverage. One of those coverages is personal liability coverage. This article provides a basic guide to understanding what liability insurance covers and its value.
Personal liability insurance provides financial coverage in case someone is injured on your property. This type of policy offers coverage to you and the members of your household.
For example, imagine a visitor falls and is injured in your yard or home. If you’re found to be at fault for this injury, liability insurance covers the claim.
Personal liability insurance isn’t a requirement for homeowners. However, mortgage leaders will require loan borrowers to purchase this insurance to protect their investment.
For example, let’s say someone has an accident in your home and decides to sue you. They could possibly go after your home as an asset. Lenders have invested in this asset, so they don’t want to compromise their stake.
Many rental companies will require tenants to get renters insurance including liability coverage. This covers the same perils as standard liability insurance for homeowners.
Accidents happen. Having liability insurance covers you and your household when they do. Even though liability insurance isn’t a requirement, having it can save you from paying out of pocket in the case of an emergency.
Stephanie Englund Siegel is a successful Realtor with Compass. She was born and raised in the Northwest suburbs of Chicago. Living in the city for over almost 20 years has given Stephanie the in depth knowledge of many neighborhoods. Stephanie feels that Chicago's culturally diverse residents are what contribute to the richness and quality of life in its neighborhoods. Before joining the Compass Family, she worked as a paralegal for a real estate attorney which gave her the knowledge about every step in a transaction. From the very beginning of the process all the way to the end, Stephanie is dedicated to her clients and the success of the transaction so both parties get a win-win. Stephanie serves real estate needs in the following neighborhoods: Lincoln Park, Gold Coast, Streeterville, Loop, West Loop, South Loop, Lakeview, River north, Lincoln Square, Wrigleyville, Ravenswood, Greater Chicago area and surrounding suburbs.
