If a neighbor, stranger or friend slips and falls on your property and holds you responsible, you have two financial safety nets through your homeowners insurance: personal liability protection and medical payments coverage. Which type of insurance protection will qualify you to file a claim is all dependent on whether there’s a lawsuit.
Personal liability coverage
Personal liability insurance protection is the part of your policy that covers you if the injured party decides to sue. Liability coverage will protect you during most instances when you’ve sued. Typically, your policy will allot you a minimum of $100,000 per claim for legal defense, although this amount varies from policy to policy.
Certain exclusions apply – liability won’t provide you any financial aid for lawsuits pertaining to mental, physical or sexual abuse; the sale, manufacturing or distribution of a controlled substance or the transmission of a communicable disease. In other words, criminal activity won’t qualify for defense money, but normal mishaps, such as a dog bite or your average slip and fall accident, will probably leave you eligible to file a claim.
If you feel like you’re at particular risk for lawsuit, you can always look into taking out an extension on your liability coverage, which typically starts at $100,000. Homeowners with large dogs or swimming pools can and should purchase greater liability coverage limits.
Medical payments coverage
Medical payments coverage, frequently referred to as MedPay, is the alternative to personal liability coverage if someone has experienced a slip and fall accident on your property. MedPay is the portion of your insurance policy that will qualify you for a claim if no lawsuit is filed. For example, if the mailman trips on your front steps but doesn’t want to sue, MedPay can help with his medical expenses. Policies typically start with $1,000 per injured person. You can also choose to purchase higher limits, if you like.
When it comes to slip-and-fall accidents, look to your homeowners insurance policy. Regardless of whether the injured party decides to sue, you have options. Your insurance can provide you financial aid for the person’s medical expenses or your legal defense if a lawsuit is filed. Alternatively, if you’re the person who fell but you don’t want to bankrupt the responsible party, recommend that he or she take a look at his or her home insurance policy. With adequate coverage, you’ll get the funds you need and the other person will be able to afford all your costs. Call a licensed insurance agent today to learn more about home insurance coverage. Ask about the types of protection typically included in a standard policy. You’ll find that you’ll likely receive coverage for things such as fire and theft but also for legal defense if you get sued.
source: http://homeinsurance.com/blog/2013/01/04/how-liability-insurance-can-protect-you-in-a-slip-and-fall-accident/
