Owning a home can feel like a mark of independence, success, and a true sign of adulthood. However, with pride of ownership comes added responsibility. When you own a home, you’re left holding the bill for unexpected events like damage, wear and tear, or the liability of injuries that happen on your property.
To make sure you are prepared for the responsibilities of home ownership, you need to know exactly what you will be held liable for. It’s also important to understand how homeowners’ insurance or a home warranty can help mitigate financial burdens. In addition, homeowners’ insurance can vary depending on the size, age, and location of your home. To help you sort out what types of things you’re liable for as a homeowner—and what your insurance is likely to cover—here are answers to the six most commonly asked liability questions.
1. What happens if someone falls on my sidewalk?
If a guest or visitor trips and falls on your sidewalk—or anywhere else on your property—you may be liable. If there was a crack or other damage to the sidewalk that could be considered negligent, you will be liable for the injury and any medical costs. But you can breathe a sigh of relief because most homeowners insurance policies include personal liability coverage up to $100,000, and a fall is likely to be covered.
2. What if my dog bites someone?
Dog bites are one of the most common reasons for homeowners liability claims. Depending on the dog breed, most injuries sustained from a dog bite are covered by a typical home insurance policy. However, all insurers have the right to exclude certain breeds from coverage, especially if those breeds are known for aggression.
If you have a pit bull, Rottweiler, or another breed that’s considered high-risk, be sure to double-check with your insurance agent to make sure you’re covered for dog bites. If your basic policy doesn’t offer coverage you may be able to purchase extra coverage in the form of a rider or umbrella policy in case something happens.
3. What if there’s a storm and my home gets water damage?
Water damage and home insurance can be tricky business. Typically, water damage is only covered if the leak originates inside your house. Water damage from an outside source like a flood isn’t usually part of a basic home insurance plan. However, structural damage due to a hailstorm or a tornado will usually be covered, but check your policy to make sure water damage is also included.
Even though it can be difficult to cover water damage that isn’t from a burst pipe, you do have options. Flood insurance is available, and can add peace of mind if you live in an area where flooding is common.
4. What if I host a party and a rowdy or intoxicated guest damages my property?
Repairing damage caused by a friend who has a little too much fun at a party is still your responsibility. The good news is, even if your guest was intoxicated at the time, the personal liability coverage in your home insurance policy should help you pay for the repairs. If you’re worried about party guests going too far, and want to limit your potential liability for accidents after guests leave, it’s smart to hire a professional bartender who can closely monitor and limit how much your guests have to drink.
5. What if a tree falls on my house?
Coming home to find a mighty oak resting on the back of your sofa is never a good thing. But it’s not all bad news. Most home insurance policies will cover damage from a fallen tree, especially due to weather or other unforeseen circumstances. The only sticky wicket would be if the tree fell on your home due to an intentional act. If it is determined that you were cutting down the tree when it fell, the insurance company could consider that avoidable, and deny your claim.
6. What if my home is damaged by a vehicle?
Whether you accidentally rammed the garage door, or a stranger lost control and drove into your home, damage from a vehicle can be extensive. Unfortunately, such incidents will not usually fall under your home owners insurance. Instead, the damage should be covered by the auto insurance of the driver responsible. So, even though you might not have been planning a remodel, the good news is you should get some financial assistance from the party at fault.
Don’t let liability risks dampen your excitement about becoming a homeowner. As long as you pay attention, ask plenty of questions, and carefully review your homeowners insurance policy—including any listed exclusions—you will be protected for most accidents that occur on your property.
Have any of these accidents happened to you? Do you have homeowners’ insurance?
