How Much Liability Coverage on Homeowners Insurance Is Reasonable?

Sep 30, 2024 | Insurance FAQs

When choosing liability coverage for your homeowner’s insurance, it’s important to consider what amount is reasonable for your specific needs. Liability coverage helps protect you if someone is injured on your property or if you are legally responsible for damages. While the amount of coverage can vary from person to person, a common recommendation is to match your liability coverage to the value of your home. This ensures that, in the event of a lawsuit, you are better protected from financial loss, and your home remains secure.

Liability coverage is generally affordable, which is why experts often suggest opting for higher limits. The difference in premium costs between different coverage limits is typically minimal, sometimes just a few dollars per month. Given how inexpensive this coverage is, it’s often considered a wise decision to purchase as much liability coverage as you can comfortably afford. The peace of mind that comes with knowing you’re well-covered in case of an unexpected event is worth the small additional cost.

For most homeowners, a liability coverage limit of at least $500,000 is recommended, and this is what many insurance professionals suggest. This level of coverage helps protect your home and other assets in the event of a costly lawsuit. By carefully evaluating your home’s value and considering your financial risk, you can choose the right amount of liability coverage to keep yourself and your home protected.

Our owner and founder, Pat Brennan, explains more. Check out the video below!

How Much Liability Coverage on Homeowners Insurance Is Reasonable? – Entrust Insurance, St. Clair Shores

Video Transcription

“I Think it would vary person to person, but I’ve always said the more the merrier. It’s a very inexpensive coverage on your home insurance. Yeah, I would say depending on what you say, reasonable or the least that you should carry, I think your liability should match the value of your home to a certain extent, because if something happens and you get sued, it can cover the value of the home.

So there’s not a lien placed against it. But again, it’s because it’s so affordable. And the, the cost difference from one limit to the other is, you know, could be a dollar, 2 per month. It’s, it’s, it’s wise to just buy as much as you can. So most, not all, but a large number of our clients will carry at least 500, 000 in coverage.

And that’s what we recommend.”

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