When people take out a homeowner’s insurance policy, they often opt for dwelling coverage over personal liability insurance. While dwelling coverage is essential, you cannot overlook the necessity of liability protection.
That is why liability insurance consultants in Belmont, NC stress the need for both types of protection. Dwelling coverage covers the home and personal belongings while liability plans cover you if a visitor is hurt on your property.
Therefore, the two main forms of protection for a regular homeowner’s policy are dwelling insurance and personal liability coverage. These two types of insurance plans are distinguished as first-party protection and third-party coverage respectively. First-party protection only involves the insurance company and the insured. As a result, this type of insurance covers a house, its contents, and loss of use. The insurance company reimburses the insured for damages.
Third-Party Coverage
According to liability insurance consultants, third-party insurance is designed to safeguard homeowners from claims made by third parties. These liability claims are made for bodily injury or property damage. The insurance company serves as an advocate by defending a claim or paying a claim made by a third party.
Liability insurance consultants add that this type of coverage can be likened to vehicle insurance. This type of protection also features first- and third-party protection. While collision and comprehensive insurance are first-party coverages, liability insurance covers you if you hit someone with your car.
Limits on Third-Party Claims
When reviewing the liability limits for your homeowner’s insurance, you need to recognize that these limits are different from the limits indicated for first-party insurance plans. Dwelling coverage specifies a certain dollar amount while liability insurance is based on a “per occurrence” limit. An occurrence marks an event where property damage or bodily injury occurs. Therefore, a “per occurrence” limit applies to each incident, not to each person who makes a claim.
You can find out more about liability insurance for your home by contacting Ewing Insurance Agency in Gastonia, North Carolina. Contact the company at 704-861-0100. Don’t go without liability coverage; remove the risk by calling us today. You can find us online at. You can pay a visit to Facebook page for more information!
