Homeowner's insurance extends beyond coverage for property damage. When purchasing homeowner's insurance, the policyholder also acquires personal liability insurance. That coverage could be far more inclusive than realized. Personal liability protection safeguards your assets from lawsuits due to injuries on your property due to negligence. That might not be the total benefit. The liability protection may also cover any negligent action outside of your home, depending on the policy terms. Anyone who owns a home and engages in a risky hobby should look closely at the coverage limits on his/her homeowner's insurance. If you participate in activities where you might hurt someone else, significantly upping coverage limits may prove advisable.
Active Hobbies, Interactions, and Risks
Someone involved in an active hobby who has a "close call" and nearly injures someone often gets scared into thinking about lawsuits. If you enjoy martial arts, dirt bike racing, contact sports, or any other risky activity where you could injure others, it won't hurt to have a decent coverage level. And don't think "being careful" is enough to prevent injuries. A local softball batter could hit the ball very hard and strike a pedestrian walking on the other side of the homerun fence. The resulting injuries might be severe, bringing forth medical expenses, lost wages, and more. Costly civil litigation may follow, but a decent amount of personal liability insurance may mitigate a significant financial risk.
Raising the Limits
Raising the coverage limits on your policy adds more financial protection. You may currently carry $300,000 in personal liability because you underestimate the potential losses. However, when you consider the potential injuries you could accidentally cause someone during hobbyist pursuits, $300,000 might be too low. For example, a scuba diving excursion comes with tremendous risks, including wrongful death accidents involving diving partners. Losing a wrongful death suit could lead to a massive financial judgment. Perhaps maxing out at $500,000 in coverage may prove advisable. Many people fail to do so because they don't realize how comprehensive personal liability protection in their specific policy is. That said, no one should make any assumptions about what gets covered.
Confirm Covered Events
Avoid making assumptions about anything in the policy. Exclusions may exist. Commercial activities are not generally not covered, nor are deliberate acts of harm. Confirm with the insurance company whether your hobbyist activities fall under covered events, and ask about adding riders to the policy if the current coverage has limitations.
To learn more, contact a homeowner's insurance provider.