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What Is Personal Liability Insurance?

No one likes to think about the possibility of someone getting injured on their property. Your house is a safe, comfortable place, and you rely on it to keep your family dry, warm, and healthy. Unfortunately, accidents do happen, and those accidents can result in lawsuits. That’s where personal liability insurance comes into play.

In Ontario, homeowners and those residing on properties have a “Duty of Care” to those who come into their homes or onto their properties. People are obligated to take care of those who enter their properties and are responsible for the care of those third parties should an accident or injury occur (intentionally or otherwise).

We have insurance for those moments that we least expect to happen. These are not regular moments in life, nor do they occur often. However, having the right insurance coverage can help support you financially while you navigate these new circumstances.

What is Personal Liability Insurance?

This coverage is included in renter insurance, homeowner insurance, or condo insurance policies. Personal liability insurance protects you financially in case someone is hurt or experiences an accident on your property that results in a lawsuit.

This kind of insurance policy can help protect your current and future assets in an instance where a lawsuit is brought against you. The policy allows you to have financial assistance for legal fees you otherwise would have had to pay out of pocket. Liability insurance can cover the people living in your household as well as yourself not just at home, but while they are traveling to many places around the world as well.

Do I Need Personal Liability Insurance?

If you are financially independent and living on your own, having this coverage can be highly beneficial. Personal liability is not a required policy under Ontario law, but it is recommended. Renter insurance, homeowner insurance, and condo insurance will all come with liability insurance, but it’s essential to have one of those policies in place. Even as a renter, an insurance policy can help you get back on your feet in case anything should happen to the home or apartment that you are renting.

As a homeowner, you are responsible for your home and your property. If someone were to be hurt because of your actions or negligence, and they sue you, your personal liability insurance policy could help you. Lawsuits are expensive, even if you aren’t found to be at fault; it’s beneficial to have these financial protections in place should the unthinkable happen.

If someone sues you, you will still have to appear in court (and potentially hire legal assistance) and work to prove that you weren’t at fault. Legal fees require money that you may not have set aside for a legal fight. If you are found to be at fault, the financial ramifications could be brutal. A lawsuit could cause you to lose investments, real estate, wages, and other assets not only in the present but in the future, too.

A personal liability insurance policy doesn’t cost much per month and can help alleviate the financial strain from a situation that could otherwise cause you a lot of trouble.

What Does Personal Liability Insurance Cover?

Personal liability insurance could cover the following:

  • Personal injury
  • The costs of a legal defense
  • Non-fault medical payments to injured third parties
  • Voluntary property damage payments
  • Damages caused by employees in your residence or by others living in your home
  • And more.

Personal liability insurance does not cover accidents or injuries involving a vehicle. Bodily injury or property damage caused by a driver or a car would be under an auto insurance policy, which is required in Ontario. 

How Much Does a Policy Cost?

A personal liability insurance policy as part of a homeowners or renter’s insurance policy won’t break the bank with its monthly premiums. Policy pricing will vary from individual to individual, but liability limits can be increased for as little as $30 per year in some instances.

Policyholders can often bundle their auto insurance, homeowner insurance, and umbrella insurance together for additional savings and extra coverage in case of a lawsuit.

To learn more about personal liability insurance, contact us at 855-DULIBAN or [email protected]. Our licensed professionals will be happy to answer any questions you have.

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