Liability insurance is included in a homeowner’s insurance policy as one of the basic coverage. Accidental damages and injuries of family members and pets which you are liable for are covered by liability insurance. However, injuries you sustain are not covered (you may use your health insurance for that). This is especially important if you have machines and tools in the house that may cause injury. Most of these are garden-related injuries. Consider having additional liability coverage especially if you have firearms at home, a swimming pool or pets. People getting injured in another’s property can file a lawsuit, and it would be a tragedy not to have enough liability insurance.

To learn more about liability insurance, check out: Liability Insurance

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Aside from the actual structure of your house (your dwelling), other structures on the insured property is covered by your homeowner’s insurance. Personal property such as furniture, appliances and clothing are also included. You may avail of additional coverage for jewelries and other expensive items. Accidental injury or property damage you are liable for is covered by liability insurance. For events where your home is severely damaged and you need to live elsewhere, your additional living expenses will also be covered. For other events such as floods and other “Acts of God”, a separate policy is needed and premiums for such coverage is usually higher that the basic coverage.

To learn more about home insurance coverage, visit:
Farmers.com
Insurance Information Institute

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If you are living on rental property, you might think you no longer need home insurance. You no longer need to insure the structure, since the building / property owner is responsible for that, but you should insure your personal properties. You should also get liability insurance and additional living expenses coverage.

If you own a rental home that has been damaged and is covered, you may claim a reimbursement for the rent you would have collected had the property not been destroyed.

For more information on rental property insurance, visit: Renters Coverage

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