In most cases the homeowner’s insurance policy will cover personal injury. But not everything is covered by homeowner’s insurance and there will be situations with exclusions.
Chad has some friends over for some fun. One of his friends brings another friend, who gets hurt on his property. He then files a claim. The liability provision kicks in because this is considered a “third-party loss or offense.” The “Personal Liability” coverage on your homeowner’s policy will typically cover such claims, but it depends on the exclusions of the policy and the specific situation of the claim.
Same party. The Same group of friends. This time Chad is the one who is hurt on his property. He can file a “first-party loss or offense.”
Your insurance will pay for the damages associated with personal injuries, including medical bills, pain and suffering, and loss of income. Your liability insurance will cover everything up to the limit specified in the policy.
What happens when his friend’s friend files a lawsuit and it ends up in court?
No problem if the policy is in line with the situation. Chad’s insurance should cover his defense. It will be filed under personal injury claims with liability coverage. Now, if his limit is still set at $100,000. He will need to figure out something for anything over the $100,000.
Chad may have the “umbrella provision”. The umbrella provisions compensate for extra damages which Chad should consider getting.
Better to have it and not need it, then need it and not have it.
Negligence, Torts, and More
90% of all injuries on your property are covered under these provisions. Injuries need to be filed under “accidental injuries.” In other words, a person cannot hurt himself with the intent to wipe the homeowner out financially.
A slip and fall can be filed under this category. The person needs to show, beyond a reasonable doubt”, that homeowner failed to keep his home free of hazards.
What About A Strict Liability Dog Bite State?
Someone gets a dog bite on a homeowners property because of his dog. The person can file a claim under the third-party provision without the need to prove that the homeowner is somehow responsible.
What About an Intentional Act on the Homeowners Part?
If a homeowner assaults someone. They sue. The homeowner will not be covered under his homeowner’s insurance or his liability coverage. The owner will be personally liable for any costs.
March 2, 2018