Your home insurance’s liability coverage explained
Baseball in the grass

Don’t let the name mislead you: home insurance protects more than your actual home and the stuff you own in it. In fact, the liability coverage included in your policy might just be one of the best insurance protections you have. Yet, liability coverage is underappreciated. Well, no more! It’s time this coverage gets the love it deserves because it goes a long way in protecting you, your family and your finances.

What is home insurance liability coverage?

Liability is term you often hear, but what does it mean? Well, if you’re liable for something, it means you’re legally responsible for it. You’re the reason it – whatever it is – happened. The good news is with any type of property insurance (home, condo or tenant), you’ll have access to liability coverage. This means you’ll be protected financially if you’re blamed for certain unintentional actions or events. The key word here is, unintentional. Harmful acts that are done on purpose, are not covered. This would include things that are against the law too.

What does liability insurance cover?

Liability coverage protects you financially if a court finds you responsible for causing bodily injury to someone or damaging their property. It protects you, your spouse and dependents who live with you. And, because accidents can happen anywhere, at any time, you’re covered wherever they occur – in your home, on your property or while travelling. Here are some real-life situations when coverage could come into play:

  • You didn’t shovel your walkway, and a courier slips and breaks their arm
  • A golf ball goes awry and hits another golfer in the face breaking their nose
  • A tree from your property falls during a storm and damages your neighbour’s roof
  • Your new pup bites the mailperson who needs to take time off work to heal

In all these scenarios, without liability coverage, you could end up paying for legal fees, medical costs or repairs if sued. That’s why this coverage is so important – you never know when you’re going to need it and there are a hundred different ways you could.

Heads up! Your home policy doesn’t cover liability for car accidents – that’s what your car insurance is for. Find out more about what liability for a car does and doesn’t cover.

Common home liability insurance claims

You’ll likely not be too surprised to hear that most common types of liability-based home insurance claims are related to accidents that happen on your very own property. Some of the most common liability claims include:

  1. Slips, trips and falls – These often happen when a homeowner fails to fix a hazard (like a broken handrail) or leaves a hazard as it is for too long, like clearing a snow- and ice-covered walkway. A well-lit home also helps to minimize slips, trips and falls, so don’t forget to replace burnt-out lights inside the home and out.

  2. Dog bites – If your dog’s the nippy type, be sure to keep your furry friend away from guests visiting your home and leashed when the mail’s being delivered! But, keep in mind that dog bites can be a grey area when it comes to claims. If you have a dog, talk to your insurer about what could happen if your pet bites someone.

  3. Swimming pool accidents –  Swimming pools are the cause for some oserious and devasting claims. Keep your pool area secure, clean and safe, and never leave young kids alone by the pool.

It’s impossible to think of every little thing that could go wrong. That’s why liability coverage is needed. All you can do is your best to keep your property well-maintained. 

How much liability insurance do I need?

More is better if you’re sued. And, even though Canadians aren’t known for being lawsuit-happy, it does happen. If you’re on the hook to pay for legal costs and payouts, these bills can add up quickly and drain your bank account just as fast. Liability coverage can help stop this from happening to you.

As a rule of thumb, a $1 million limit is advised but $2 million or more is better. And don’t worry – usually, raising your limit costs a few extra dollars a month. Really. The added cost typically runs a couple of extra toonies a month.

Tip: Check out five wallet-friendly steps you can take to help you save on your home insurance!

Home liability insurance FAQs 

Now you know the basics of what home liability insurance is, but you might have other questions. We’ve rounded up a few of the most common questions homeowners ask us. Don’t see your question? Reach out via email or chat. We’re happy to help!

Does home insurance cover me if someone gets hurt on my property?

Yes. Legal fees and court mandated costs (like medical bills) would be covered if you’re sued and found liable for the injuries. Your liability insurance provides coverage for certain actions or events – but only if it was an accident. As the saying goes, crime doesn’t pay and neither will your insurer if what happened was done on purpose.

Does liability cover medical expenses for me and my family?

No. While medical expenses for others is covered by the “bodily injury” part of your liability coverage, it doesn’t cover you or anyone who lives with you. It only applies if you cause injury to someone else and are sued – and you can’t sue yourself. 

Is my home-based business or home daycare included in my coverage?

Unlikely. Most insurers don’t include coverage for a home-based business or daycare in their standard home insurance policy. If you’re running a hair salon out of your basement or picking up extra cash taking care of other people’s kiddos, your liability risks are greater than what a typical home insurance policy covers.

Keep your insurer in the loop about your business endeavours. You can add business-related coverage to your current home policy or get a separate business insurance policy to protect everything you’re working hard to achieve.

How much does home liability insurance coverage cost?

In short, not much. The part of your rate that pays for your liability coverage accounts for just a fraction of your total home insurance premium. Every person’s premium is different which is why it’s tough to give you a specific cost. (Not ideal, we know, but it’s true.)

Your home insurance rate is based on things like credit score and claims history. It also factors in details about your home like where it’s located, what it’s constructed of, its age and how it’s used. Are you running a business out of your home? Do you have tenants? Do you ever rent out your home, or portions of it? Because of all these variables, coverage is priced differently for everyone.

What is the best company to get home insurance from?

The best company for home insurance is the one who offers you the coverage you need at the best possible price. This is exactly what Sonnet aims to do. We’ll help you get a policy that fits your needs at a competitive price. While price is important, there’s more to it than that. When you choose Sonnet home insurance you also get:

  • 24/7 claims support –  Get top-quality care from our licensed insurance agents around-the-clock.
  • Customized coverage – Choose coverages that fit your unique needs and budget.
  • Simplicity – Get a quote, buy a policy, manage your account or start a claim online. Our secure digital platform protects your information from start to finish. Others say it, but we mean it.

Have questions about your coverage? Review your home insurance policy with someone you can trust. We can add clarity to this often misunderstood coverage. Is it time to switch your home insurance provider? Compare home insurance quotes today.

Protect your home and the things you love most.