Insurance Basics [1] [2] [3] [4] [5]

Protecting Yourself Against Lawsuits; Personal Liability
Most homeowners policies include liability protection that covers you for damages you cause inside or outside your home. When reviewing your coverage needs, look carefully at the amount of liability protection that your homeowners policy provides. Many homeowners policies come with a standard amount of liability insurance. Be sure to purchase limits adequate to protect your assets.

Common Exclusions and Limitations

Dwelling Perils:

A homeowners policy provides protection from the following perils:


fire or lightning, windstorm or hail, explosion, riot or civil commotion, smoke, theft, vandalism/malicious mischief, glass breakage, and volcanic eruption.

Some policies also provide coverage for:


falling objects, weight of ice, snow or sleet, freezing of plumbing, accidental plumbing discharge, rupture of steam or hot water-heating system, air conditioning systems, or water heaters and damage from artificially generated electricity.

Most homeowners policies do not provide coverage for the following perils:


1. loss due to flood, or water that backs up through sewers


2. loss to building by earthquake, aftershocks, and mud slides


3. loss by enforcement of a law or ordinance regulating construction, repair or demolition, or zoning


4. loss due to power interruption when the interruption takes place off the residence property


5. loss due to neglect of the insured to save and preserve property following a loss


6. war and nuclear perils and intentional loss

Personal Property:

Certain types (classes) of property are specifically excluded from coverage because of their nature or because they are generally covered by other types of policies:

animals, birds, fish; motorized vehicles or aircraft, including equipment and accessories; radios, CB radios, tape decks, etc., while in or on a motor vehicle; articles separately described and specifically insured in any other insurance; property of boarders, property in an apartment held for rental by the insured, property rented to others off the residential premises.

Certain classes of property have special limits of coverage, including:

money or related property, coins and precious metals other than tableware; securities, manuscripts, and other valuable property; watercraft, including trailers and equipment trailers; loss by theft of jewelry, watches, furs and semi-precious stones, gold and silverware; loss by theft of firearms; property on the residence premises used for business purposes; property away from residence premises used for business purposes.

Liability:

The liability portion of your homeowners policy typically does not provide coverage for:

bodily injury or property damage which is expected or intended by the insured; bodily injury or property damage arising out of business pursuits; bodily injury or property damage arising out of rental of any part of the premises; liability arising out of ownership, maintenance, use, loading or unloading of aircraft, motor vehicles or watercraft; liability arising out of war or insurrection.

Exclusions specific to Personal Liability include:

liability assumed under contract or agreement; property damage to property owned by, used by, or in the care of the insured; bodily injury which is covered under a Workers' Compensation policy.

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