Liability insurance: a must if there’s an accident in your home

I was talking about my new insurance policy over dinner one evening (that’s right, we were having a real adult conversation) when a friend mentioned he could bring a claim against me for damages if he were  to be injured in my house.

At the time I didn’t understand how I could be held responsible for an accident in my home if I hadn’t done anything deliberate to cause it. I couldn’t imagine someone suing over that kind of accident. If someone comes to my house for dinner, you’d think we would be good enough friends for the evening not to end in a lawsuit!

There’s no need to panic,since this isn’t an everday occurrence. While people are occasionally sued for accidents that happen in their homes, the damage is initially assessed by the insurance company. However, you should know that your home insurance includes civil liability that protects you in case of an accident that ends badly for you and your guests.

What does that mean, more precisely? For example, I opted for $1 million in civil liability coverage with my tenant’s insurance because I live in an apartment building with three units and I don’t have a million dollars should I be held responsible for a fire, flood or other incidents that causes damage to the building. Ha! So if I were a homeowner and one of my trees were to fall and injure you in my backyard (unlikely I admit), you could be compensated.

In the event that someone is injured in your home, there are a few things you should do. First, help the injured party, of course. Second, you can contact your insurance company to apprise them of the situation and they will advise you how to deal with it. The injured party is unlikely to make a claim in most cases, but if he or she sustains losses (for instance the inability to work for a given period of time), you will have the coverage to cope with the victim’s claim.

A piece of motherly advice: better to be safe than sorry. Make sure your floor is completely dry before your guests arrive. LOL!

Ensure that your guests are covered in the event that an accident occurs by investing in the right home insurance coverage.