Personal Liability Insurance

No matter how cautious you consider yourself to be, accidents unfortunately happen and they can end up being very costly. Personal liability is a third party coverage and is included in most home insurance policies.

What Does Personal Liability Insurance Cover?

It helps to protect the insured from claims made against them by third parties and usually includes:

Repairs and legal expenses if you accidentally damage someone else’s property
Medical bills and legal expenses if someone is accidentally injured on your property
Medical bills and legal expenses if you are found liable for the accidental injury of someone at another location
An injured party’s loss of wages

Exclusions are applicable and include damages to property you own, claims arising from your business or profession and claims due to an act intended to cause bodily injury or damage. Liability limits also apply, so make sure you are aware as to what is actually covered, what is not and how much liability you are insured for.

How Much Personal Liability Do I Need?

Should your exposure to liability claims be higher than average, for example you have children who often have friends over to play, you own a high-risk dog, a swimming pool or host frequent social events at your home, you may want to consider increasing your personal liability coverage by purchasing a personal umbrella liability policy. The reason being, that these situations increase the potential for a personal liability claim – which without adequate coverage, could devastate you financially.

Many people don’t realize just how big a financial burden it could be if they are found to be responsible for someone’s injury or property damage. Some insurance providers impose a maximum liability amount that they will cover (ours is $500,000, for example). You'll likely be surprised at how cost effective increased Personal Liability coverage can be. The peace of mind afforded by such cover, particularly protection against expensive medical bills due to a severe injury, is well worth the small increase in your monthly premium. If a claim is made against you, you should notify your insurance provider immediately. Never agree to a resolution or settlement with the third party as this may contravene the coverage on your policy.

To ask about a policy with personal liability insurance, call a Kin agent at (855) 717-0022, or get started on an application here.

The handyman, the bookshelf and the lawsuit

The Gonzales family hired a handyman to help with some chores around the house. The details of what happened next are a little fuzzy….but all we know is that he ended up on the floor, with a bookcase on top of his body. Mr Gonzales helped him up, and everything seemed fine. End of story, right?

Wrong. A few weeks later the Gonzales’s found out that the handyman had decided to sue them! The handyman was alleging all sorts of things: that the family was neglectful! That he had suffered emotional damage! That the book case was dangerous!

Not enough coverage

So, let’s imagine that the Gonzales’s family was found liable. The handyman won $300,000 in damages, but the Gonzales’s only had $100,000 in liability protection.

The Gonzales’s are now in trouble: They have to pony up the $200,000 balance. Their $50,000 in savings? Wiped out. They have to sell the car. They might even have to sell their house.

Covered by Kin

If the Gonzales’s had bought with Kin however, they’d have $500,000 in liability coverage, which covered the $300,000 to the handyman and the lawyers fees. They wouldn’t have to pay anything.

They can keep the $50,000 in savings. They can keep the car, they can keep their house. Basically, their financial future is protected.

But please: anchor your bookshelves.

Learn about Our Coverage

You shouldn't need an advanced degree to understand your insurance policy. Learn about what a Kin policy offers, with real world examples, to provide clarity and provide peace of mind.

Coverage A - Dwelling Coverage

The dwelling coverage portion of a standard homeowners insurance policy pays for repairing or rebuilding your home’s physical structure such as walls, floors, roof, windows, support beams, and foundation if your home is damaged by a covered event (fire, wind, theft, etc.).