Homeowners' insurance includes coverage for personal injury liability. This means the insurance will take over your liability if someone gets injured in your home. Some policies also cover injuries caused by members of your household, including pets, away from the home. However, there are a few exceptions you ought to know about. Your homeowners' insurance isn't likely to cover these injuries:
Injuries Covered By Auto Insurance
As mentioned above, homeowners' insurance may cover injuries caused by you or members of your household away from home. For example, your homeowners' insurance covers you if you accidentally knock down someone while walking in the street or if your kid hits another person with a baseball while playing in the park. However, do not expect coverage if the injury is caused by or in your car; for example, if you hit a pedestrian while driving a social gathering. In such cases, it is your auto insurance coverage that will come to your rescue.
Business Related Accidents
Business-related accidents form another category of injuries that your homeowners' insurance doesn't cover. This is the case whether you conduct the business at home or away from home. If you operate a home bakery and your delivery person slips and falls on your driveway, your homeowners' insurance will not pay for the injury. Also, don't expect coverage if you accidentally injure someone when meeting clients away from the home. For such injuries, purchase special coverage for your home-based business or add a rider to your existing homeowners' coverage.
Like most insurance policies, your homeowners' insurance will not come to your rescue when you intentionally injure other people or cause damage to their properties. For example, don't expect coverage if your kid vandalizes a neighbor's house or if you injure someone during a fight.
Liability Risks for Your Household Staff
By definition, your household employees work in your home, but this doesn't mean your homeowners' insurance will protect you if they sue you. Your household staff may sue you for discrimination, wrongful dismissal or even harassment. For such risks, you need employment practices liability insurance (EPLI) or an endorsement to your personal liability policy.
With insurance, it's never a good idea to assume anything. Making an assumption is dangerous because it can turn out you are wrong just when you need the coverage. Therefore, talk to your insurance agent (such as one from Accredited Insurance Group Inc) or carrier to discuss your existing policy and get any clarification you may need. After that, buy separate coverage or endorse your existing one for full protection.