Summertime is a great time for getting together with friends. From pool parties to cookouts, this is the time of year for hot fun under the sun.But with increased social activities at your home come the increased risk of accidents or injury for guests. Knowing that you’re fully covered — and what to do in case an accident occurs — can offer peace of mind.Liability InsuranceLiability insurance is part of your homeowners insurance coverage and covers bodily injury and property damage that occurs to someone else while they are on your property.“Making sure that you have the right liability limits on your home is no different than making sure your car has the right liability coverage before you get out on the road,” explains Mike Tate, Texas Farm Bureau Insurance agency manager in Caldwell County. “Your personal liability limit should be as high or greater than your level of assets. They can’t legally take away your homestead, but if someone is injured on your property [and a judgment is levied against you], they can take away other assets.”Tate suggests that policyholders with more than $300,000 in assets take out a personal umbrella liability policy, which expands the original policy’s liability coverage. A large judgment could not only affect current assets, but potential future earnings and inheritances as well.“You always think nothing is going to happen, but there are so many things that you’ve never even thought about that can go wrong,” Tate says. He adds that liability coverage should extend to all acreage you own or lease, because even if someone is injured while trespassing on your property, they can still sue you for damages.Making the Best of the Worst Case ScenarioHopefully, you’ll never need to use your liability coverage, but if someone is injured on your property, it’s important to know what kind of coverage your policy offers so you can take immediate action.“One of the first things that you can do as a preventative measure is, if someone is injured on your property, offer to file a claim under your medical payments coverage” Tate says.He says the medical payments coverage will typically pay up to $3,000 or $5,000 for the injured person’s medical bills, and offering to use that can often be effective in preventing the injured party from filing a liability claim against you.Finally, Tate advises, make sure everyone in the family is aware of what to do if an accident takes place, and emphasize the importance of responsible behavior.“Talk to your children about the responsibility that comes with owning property,” he recommends. “If they invite friends over, you have a certain level of responsibility for them. They need to know that their assets could be at risk because of events that happen on the premises. Everyone needs to be aware and prepared.”
