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A policy that gives you more comprehensive and wide-ranging coverage means the insurance company is taking more risk, so that policy may be more expensive than one which gives you less cover, because it has more exclusions.
Liability limits generally start at about $100,000 but you can buy more. If you have significant assets, or are a well-known public person, you may want even more coverage. An umbrella policy, aka excess liability policy, kicks in once your homeowners insurance liability benefit is exhausted.
Your homeowners insurance provides financial protection against lawsuits from damage or injuries that occurred on your property. This includes no-fault medical payments for others (not you or your family or pets) injured in your home. They can simply submit medical bills to your insurance company.
It also pays for damage caused by your pets or children. If they destroy your neighbor’s designer window playing ball, you’re covered. If they destroy your window, though, tough luck. Your liability policy also pays to defend you in court and any damages awarded up to the limit stated in your policy documents.
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