This is part two of our post answering the question, “How much home insurance is enough?”
A standard home insurance policy covers third-party injuries and property damages when you are at-fault for an accident. This could include an accident that occurs in your home or one that you or a member of your household is responsible for causing away from your home. In fact, personal liability coverage follows you nearly anywhere you go with certain exceptions for events like boat or auto accidents.
As a Wisconsin independent insurance agency, we know first-hand the broad scope of damages covered by insurers. Often, homeowners are sued for injuries or damages they did not cause directly, yet they are legally responsible. It could be a dog that bites a child or another pet during a visit to the dog park. Depending on the extent of the injuries, a homeowner could be responsible for tens or even hundreds of thousands of dollars in damages.
That is why we here at Lillie-Couch Insurance recommend purchasing high-limit personal liability coverage that will protect your income and assets against a potential lawsuit. Many Clear Lake area homeowners choose high-limits – usually between $100,000 and $300,000 at a minimum. For help determining how much coverage may be right for you, contact our office today.
Medical payments coverage assures your house guests get proper medical care when they are injured on your property even if you were not at-fault for the accident. Coverage is usually capped between $1,000 and $5,000 – enough to perhaps cover an emergency room visit or a health insurance deductible.
A typical home insurance policy contains only the coverage that the average homeowner needs, but one size does not fit all. While standardized coverage helps keep premiums low, it could ultimately cost a homeowner after a disaster or other loss. That is why we recommend personalizing your policy with endorsements that modify the provisions of your policy according to your individual risk exposures and needs. This could include:
- Inflation guard to protect the value of your dwelling coverage
- Scheduled coverage to protect high-value possessions
- Personal property replacement cost endorsement
- Home business endorsement
- Water backup and sewer endorsement
For help determining which endorsements could better enhance your coverage, contact our office today.
Beyond Home Insurance
A well-constructed home insurance policy can protect your home and the things you own, but even high-limit liability coverage may not be enough to prevent a major financial loss after a lawsuit. When judgments reach hundreds of thousands or even millions of dollars, you may be personally responsible for paying any damages that exceed the limits in your policy.
That is why we recommend all homeowners consider adding an umbrella policy to their insurance portfolios. At an average of just $200 per year or less, umbrella insurance is an affordable way to thwart the financial effects of litigation. Most umbrella policies provide a minimum of $1 million of supplemental liability coverage, although higher limits are available for those who need it. For more information about umbrella insurance or to find out if it could benefit you, contact the office here at Lillie-Couch Insurance today.