Does homeowners insurance cover personal injury lawsuits?
The answer is “most likely.”
Most people buy a homeowners’ insurance policy so that they are covered if their house or property is damaged by fire, wind, or natural disaster. But the terms of most of these policies also cover homeowners in the event that someone is injured on the property.
It depends on the specifics of your policy of course, but most homeowners’ insurance agreements will protect you from liability when dog bites, slip and fall incidents, swimming pool accidents, and injuries to contractors and other visitors occur on your property.
Watch the policy limits. If you’re sued over an injury that occurs on your property, even if your homeowners’ insurance will kick in to cover the claim, these kinds of claims can get expensive. If someone is seriously injured, it’s easy to see how damages can add up to hundreds of thousands of dollars. So you want to make sure that your policy (or any separate personal injury provision) has a high coverage limit. You don’t want to be left personally on the hook for any amount over the policy limit.
Your policy may come with a free lawyer! A secondary benefit of having a homeowners’ policy in place is that the insurance company will typically appoint -- and pay for -- an attorney to deal with any lawsuit that stems from the claim. In other words, you probably won’t need to hire your own lawyer, which is good news for you and your wallet.
Learn more about Homeowners' Insurance and Injury Lawsuits.