Every homeowners insurance policy comes standard with personal liability coverage. Should a third party get hurt on your property, this coverage will protect you financially in the event of a personal injury lawsuit. Here’s what you should know about its terms and all that they entail so you can decide how much you may need. 

What Does Personal Liability Coverage Include?

In the event of a covered incident on the premises, personal liability coverage will compensate those who were affected for bodily injury and property damage. It can also cover your legal fees should you end up being sued. Common scenarios that warrant a liability claim include slip and fall accidents and dog bites. It’s essential to review the terms of your mobile home insurance or traditional homeowners insurance policy, though, as there are a lot of exceptions.

For example, if your dogs are considered an aggressive breed, any injuries they cause may not be covered. Likewise, if you fail to inform the insurance company that you have a pool—or you fail to install an adequate fence around it—you may not be protected from a lawsuit should someone get hurt while swimming. 

How Much Personal Liability Coverage Do I Need?

Your homeowners insurance policy might come with a few hundred thousand dollars in liability coverage. While you can’t predict how much damage an accident might cause, you can estimate how much you own in assets. Generally speaking, it’s wise to purchase enough coverage to protect all your property in the event of a lawsuit. If the plaintiff’s damages exceed the coverage, you could be ordered to liquidate various assets to make up the difference.  

When a standard policy is not enough to cover all that you own, purchasing an umbrella policy is necessary. An umbrella liability policy is essentially separate coverage that supplements existing liability insurance. It’s meant to bridge the gap between the coverage that you already have and the protection that you need. Thankfully, because umbrella policies only pay out when all other coverage has been exhausted, they are usually relatively affordable, even in significant amounts like $1,000,000. 

By following these suggestions, you may be able to avoid damages that could result in a large homeowners insurance claim. For more information on protecting your property, get in touch with the team at Farmers Mutual of Tennessee. Since 1913, they have provided quality insurance coverage at an affordable price to residents throughout the state of Tennessee. Their local independent agent will be happy to help you find the right coverage for your home, mobile home, rental dwelling, or farm at a price that suits your budget. Give Farmers Mutual of Tennessee a call today at (800) 824-9555, and visit them online for more information.