Several scenarios can lead to a liability lawsuit. For example, someone could sue you if they slip and fall on your icy sidewalk, as this may be considered negligence. Injuries sustained on your trampoline or in your pool in Northwest Arkansas could also result in lawsuits. Additionally, dog bites are another common reason for liability claims.
Costs Covered
Most homeowners’ insurance policies cover your legal defense, even if you are not found liable. They can also cover settlements if you are found liable for damages or bodily injury. However, some insurance companies may have limitations or specific exclusions, so it’s important to understand your policy.
Coverage Limitations
Homeowners’ insurance policies often have coverage limits. For instance, if a settlement requires you to pay $50,000 but your policy only covers $25,000, you would be responsible for the remaining $25,000.
Many property owners choose to purchase additional coverage or an umbrella insurance policy to ensure they have adequate protection. This is especially important for high-net-worth individuals who may be more likely to face lawsuits.
Common Claim Denials
While homeowners’ insurance from a provider like Adams Insurance & Financial typically helps in liability lawsuits, there are situations where claims may be denied.
For example, if you fail to inform your insurance company about certain amenities, such as a trampoline, your claim may be denied because the insurer was unaware of the amenity before the lawsuit.
Additionally, some insurance companies include coverage for pets, while others specifically exclude them from their policies. It’s crucial to ask a professional agent about what is covered under your policy before an incident occurs.
The professionals at Adams Insurance & Financial are here to help you understand your policy and ensure you know what is covered. Contact us today to learn more. We proudly serve the Northwest Arkansas area.
