Most homeowners have homeowner’s insurance that includes personal liability protection. This protects them from being sued if someone is hurt on their property.
A formal lawsuit starts when the plaintiff (you) files a civil complaint against the defendant(s), alleging negligence that caused harm. The lawsuit claims damages. These are the following types of damage:
Liability Coverage
Most states require specific liability coverage as part of their insurance laws. Personal liability coverage protects homeowners, renters, and condo owners if they are found responsible for an accident that damages someone else’s property.
This kind of insurance helps shield you from having to dip into your savings or paychecks if you are held liable for an incident injuring another person or their property. It shifts the burden to an entity with much larger pockets, like an insurance company.
Liability coverage will typically pay for medical expenses, repairs, and replacement costs if your actions are found to be at fault. However, it won’t help you pay for damage to your car or other types of personal property, which would need collision and comprehensive coverage. Those kinds of policies are also available separately as standalone policies. For your reference, you can visit this site https://schillingsilvers.com/.
Medical Expenses
A standard homeowners policy typically covers medical expenses for anyone hurt on your property, including non-family members. If the injured party lacks health insurance or doesn’t want to file a claim against you, this coverage can act as a financial buffer that prevents them from draining their savings and other assets to pay for an injury they didn’t cause.
Generally, this coverage is much lower than liability limits, and you’ll have to choose whether or not to file a claim with your insurer. Every claim you submit will go on your record and may raise your premiums.
Say one of your guests trips over the steps outside your home and breaks their ankle. This could lead to X-rays, hospital visits, and follow-up doctor visits, which is why medical payment coverage might be an option. However, if the same accident resulted in surgery and lifelong impairment, you would need to turn to liability coverage.
Loss of Earnings
In addition to medical expenses, property insurance can cover personal injury damages such as loss of earnings. These are called “special” damages because they have a clear monetary value. To prove these damages, keeping detailed records of all income streams and your overall earning potential is essential.
It’s also necessary to establish how the accident affected your career prospects to prove future lost earnings. These are called diminished earning capacity damages and can be included in your overall compensation package if you have permanent or long-term injuries.
Proving these losses can be tricky, especially if you have no prior earnings history. This is why it’s a good idea to work with a personal injury attorney who understands how these damages are calculated and the evidence needed to demonstrate them. The difference between loss of earnings and loss of earning capacity can be challenging to understand, but it’s best to discuss this with your attorney to get clarity.
Damages
Property insurance provides various benefits to homeowners and others who have it. It is one of the most popular types of insurance coverage for individuals and businesses.
This policy covers real property – such as the house and any attached structures like sheds or garages – and personal property, which is not considered real property (such as furniture, clothing, and electronics). It also protects you from lawsuits if someone else gets hurt on your property or by your pets.
Most policies also include personal liability protection, which pays for injuries and damage you cause to others on your property if you are found negligent. This is a common component of homeowners’ and renters’ policies. It also covers the medical expenses of others if they are injured by your pets, for example. It typically does not cover punitive damages in a lawsuit, criminal acts, or business-related accidents.