Does Homeowner's Insurance Cover Personal Injury Claims?

When someone is wounded on your property or in your home due to an accident or other unintended occurrence, the liability component of your homeowner's insurance policy will normally kick in to cover any personal injury claim. A "third-party" claim is one filed by someone other than the policyholder (a "first party" claim is one filed by the policyholder for his or her losses, such as those sustained in a covered peril such as a flood). A personal injury lawsuit filed by the injured party does not affect your coverage under the policy.

Compensation for Injuries

To the extent of your liability coverage, you are responsible for covering the injured party's losses (such as medical expenses, lost wages, pain and suffering, and other damages). Moreover, the insurance firm will foot the bill for legal representation should a claimant sue you for injuries sustained on your property (more on later).

If someone were harmed on your property, and you carried $200,000 worth of liability insurance, your policy would compensate them up to that amount.

In reality, most insurance claims are settled for amounts equal to or less than the maximum coverage provided by the policy. However, if the injured party has had severe or permanent injuries, their claim may exceed the policy limitations, leaving you personally responsible for paying the difference. Remember that your homeowner's insurance may contain an "umbrella" provision that will kick in and protect you even if your liability limits are surpassed.

Greater protection is worthwhile, even if it may increase your monthly payments. The liability coverage ceiling in most insurance policies increases exponentially with the amount of the premium paid.

Notifying your insurance carrier is the first step to taking action if an incident occurred on your property or in your house that could result in an injury claim (such as a slip and fall, dog bite, or other incidents) and that could trigger your homeowners' policy.

Most Insurance Policies Cover the Cost of Defending You in Court

Your homeowner's insurance coverage can include a legal service at no extra cost. If a homeowner is sued due to a covered loss, the insurance company will normally appoint and pay for legal representation on the homeowner's behalf. That's right; you'll save both time and money by not having to get your legal representation. If you're getting sued for an injury, you may find it difficult to afford a personal injury attorney.

The Three Types of Wrongful Conduct:

Most cases involving injuries sustained by guests at your house will fall under the policy's purview since they will most likely result from accidental accidents governed by the legal notion of negligence. The injured party in a slip-and-fall occurrence would have to prove that you did not take reasonable precautions to make your property safe to file a premises liability claim against you.

However, in some cases, carelessness may not be necessary to establish liability for harm. In a "strict liability" dog bite state, for instance, if your dog attacks someone, they can likely file a third-party claim under your homeowners' policy without proving that you were at fault.

If someone gets hurt because of your deliberate actions, it's unlikely that your homeowner's insurance will pay for medical expenses. Therefore, your homeowner's insurance policy will likely not protect you if you assault someone (especially someone who was there with your permission) and they sue you for their injuries.