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Home Insurance

• The 17 Perils
• Actual Cash Value vs. Replacement Cost
• Understanding Deductibles
• Documentation of Valuables
• Expanding Coverage
• Floaters for the Finer Things
• Flood Insurance
• Insuring a Home
• Liability Coverage
• The Basics of Homeowners Insurance
• Cover Yourself with an Umbrella Liability Policy
• Insuring a Condominium
• Special Circumstances: Property Under Construction and Rental Property
• Renters Insurance
Auto Insurance

• On the Move: Insurance Protection for Your Automobile and Other Vehicles
• Auto Insurance Basics: Liability, Collision, Comprehensive
• Additional and Optional Coverages
• Who's At Fault?
• Premiums and Discounts: Factors that Affect Your Rate
• What To Do After an Accident
• Getting Your Car Back
• Using Your Personal Car for Business
• Risky Drivers
• Adding a Teen or College-bound Driver
• Motorcycle Insurance
• Watch the Hull: Insurance for Boats and Other Watercraft
• Specialty Policies Insure Fun
• Aviation Insurance
Risk Management

• Term Life Insurance
• Whole Life Insurance
• Universal Life Insurance
• Variable Life Insurance
• Auto Insurance
• Insurance Claims
• Maximizing Insurance Benefits
• Protecting Your Home
• Assessing Disability Insurance
• Types of Health Care
• Additional Liability Coverage
• HMOs and PPOs
• Evaluating Insurance Companies
• Long-Term-Care Costs
• Medicare Coverage

Liability Coverage

One important part of the basic homeowner's policy is coverage for personal liability. This part of the policy covers you and your family if someone is injured or their property is damaged due to your negligence.

A key distinction is whether the mishap was due to negligence or intentional misconduct. For example, if your guest fell because a handrail was broken which you had known about but failed to repair, the insurance company may be responsible for her medical bills and any legal fees if she decides to file a lawsuit. If she fell because you pushed her, that is intentional misconduct and your liability coverage won't apply.

The basic homeowner's policy normally includes about \$100,000 of liability coverage. However, increments of \$300,000 or even higher are not uncommon.

If your have considerable assets or if some aspect of your life such as a teenager or a watchdog exposes you to additional risk, you may want to consider supplementing your coverage with an "umbrella" policy, which is discussed in a separate article in this section.

© 2003 Emerald Publications

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