The typical homeowner’s policy includes a liability provision. It covers most personal injury claims. Each of those gets classified as a 3rd party claim.
What is promised to the policy holder?
• Payment for all losses suffered by the 3rd party, up to the limits of the coverage.
• Provides defense lawyer, if someone files a lawsuit against homeowner/policy holder.
Some homeowners purchase an umbrella provision.
It guarantees coverage, if the value of damage to the 3rd party exceeds the limits stated in the liability provision. There are actions to be taken following occurrence of an incident:
Contact the insurance company. Let them know what happened. Be sure that you understand what qualifies as an incident. The most common incidents involve the occurrence of a slip and fall, or an injury caused by a dog bite.
Some incidents are seldom foreseen, until they happen. For instance, if a friend of a younger person in the home were to leave a bike on the steps of the porch, and then someone tripped on it, that would qualify as an incident.
Realize what sorts of occurrences should not be reported, because any resulting damage or injury would not be covered. Do not contact the company that sold you a homeowner’s insurance policy if you got mad at a visiting neighbor and hit him, while he was standing in your foyer.
An insurance policy that could act like an umbrella provision.
A homeowner does not have to have an umbrella provision, in order to feel guaranteed of added coverage. It is also possible to buy an insurance policy that has been offered by the company that takes the monthly mortgage payment. Personal Injury Lawyer in Kitchener knows that will seek to help the homeowner retain the home’s value.
In this case, that second policy might cover a 1st party claim, instead of a 3rd party claim. For example, suppose that a leak in the roof has caused water damage. If the costs for fixing that damage were to exceed the limits of coverage, the homeowner could contact the insurance company that had sold its policy by using the mortgage company.
That contact should result in the awarding of money for the reported damage. Homeowners should also contact their insurance company if they suspect the existence of possible damage. For instance, a home should be inspected after local residents have experienced a tremor, a minor earthquake. If no problem is found, but unnoticed damage results later in more extensive damage, then the homeowner could have reason for filing a claim against the company that sold the home insurance policy.
So, homeowner’s insurance does cover claims. On the other hand, evidence of deficient coverage could be grounds for a claim.