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By Krista Farmer
If your homeowners insurance policy has been stuck in a drawer, cabinet or just tucked mindlessly away somewhere, it is probably about time to pull it out, shake off the dust and make sure its still up-to-date. This article is the fifth in a series of five articles that will help you decipher your homeowners insurance policy.
Its been a fun ride, but all good things must supposedly come to an end. While fun and insurance are two words that rarely share common territory, the past four articles were an attempt at dissecting your homeowners insurance policy in a fun, easy-to-understand manner. While you may think understanding your insurance policy is a lost cause, look no further. This Dissected series is your key to homeowners insurance understanding.
Keeping your homeowners insurance updated might be a dismal task, but it is of utmost importance. As discussed in some of the previous articles, not only is it important to purchase homeowners insurance, it is just as vital to know what that policy covers.
Homeowners insurance policies contain several different coverage areas.
The topic of the previous article, Part 4 of this series, discussed insuring your additional personal living expenses. This final installment of Your Homeowners Insurance Policy Dissected will unveil the coverage in the last section of your insurance policy covering personal liability. Many might consider this one of the most important components of a homeowners insurance policy because it covers legal circumstances.
COVERAGE FOR PERSONAL LIABILITY
The personal liability coverage in your homeowners insurance protects you from lawsuits stemming from bodily injury or property damage to others on your property situations in which you are legally responsible to pay.
A few examples of where personality liability coverage can be used:
Your misguided golf ball busts someones windshield.
A houseguest slips on loose carpet in your living room and sprains his or her ankle.
Giselle, your Spanish Mastiff, bites the next door neighbor.
Because these types of damages can really add up, you need to know what your liability coverage limit is. Keep in mind that you cant predict where liability law suits will originate. Due to this, it is important that your homeowners liability coverage matches the rest of your liability coverage.
Not sure how much liability coverage you should purchase? There are several things to consider
What are you worth? (How much money do you have now and how much will you have in the future?)
Will you feel morally responsible? (Will you purchase a higher liability limit to be sure that those injured are provided for?)
What would you expect if you were the one suing?
With most insurance companies, the difference between $100,000 liability coverage and $1 million liability coverage is no greater than $75 per year.
Who knows? A few more dollars per month could save you a few headaches and thousands of dollars in the future.
In the end, it is essential to know what youre covered for because each homeowners insurance policy is different. You need to know what your policy limits or excludes.
Is your homeowners insurance policy up-to-date? (Some policies automatically update your homes current value. Does yours?) While it is easy to let that dust settle over your policy from year to year, keep in mind that putting it aside could cost you much more in the end. Your homeowners insurance policy may make heavy reading, but it will be even more burdensome should you not know what is covered in it.
About the Author: HometownQuotes, a Franklin, Tennessee company, provides a quick and easy way for consumers to compare multiple insurance quotes. To learn more, visit