In the past few years, we’ve observed as home values in San Diego County hit an upward swing. Yet, most home owners don’t reassess their liability coverage to ensure their assets are properly protected.
Below are some reasons that policy holders should consider an increase in limits of liability on their policies:
1. Liability coverage protects your greatest asset: your home.
Liability insurance covers the insured from an unintentional accident that injures an individual or damages their property while on the insured’s property.
When people step foot on your premises, you are automatically responsible for their safety. If somebody is injured, even if walking in front of a home on a sidewalk, there is potential that they will bring a lawsuit against the owner. If the home is worth $500,000, surely $300,000 in coverage would not be adequate.
2. The cost to increase liability is cheap.
In some cases the cost to increase liability from $300,000 to $500,000 is as little as $10 per year. That’s almost double the coverage for the same cost as a few gallons of gas.
3. Liability coverage may follow you outside the premises.
Many home policies will include liability coverage that follows the insured off premises in certain situations. For example, if you bump into a patron at a grocery store and they fall, your policy may include coverage for their medical bills.
A large lawsuit could essentially cause an equally severe loss to a home as a catastrophic event.
If labor and material costs suddenly skyrocketed and the cost to rebuild a home doubled, most homeowners would reconsider their dwelling coverage value on their insurance policy. So, why do they not reconsider their liability coverage when their home value increases?
Although the above reasons to increase liability are most often accurate, it’s always a good idea to check your own policy to verify information relative to your specific situation and coverage. It is recommended that if you have questions, that you contact your agent and review your coverage.
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Contact HWP Insurance for more information!