A person suffering an injury on your property can be a very worrisome situation. Even if you do your very best to help them, they may feel you are responsible for their losses. In some cases, you are. Your home insurance company might offer financial help for this situation, however.
There are two components of your insurance that may help, including medical payments made to other people and personal liability coverage. Here’s the breakdown.
What Is the Difference?
These two components of your home insurance plan do different things. First, medical payments help cover the injuries to others (who don’t live with you) that occur in your home. This is no-fault medical coverage because it does not matter who is at fault. It provides coverage to injuries people suffer when they visit you. The limit on this form of insurance is lower, on average compared to its counterpart of liability insurance.
The second component is personal liability insurance. This has a higher limit because the risks are higher. It covers incidents in which you are responsible for the losses the other person suffered. So, were someone to get hurt in your home, sue you and demand compensation, this benefit will be there to help you.
How Does No-Fault Medical Payments Insurance Work?
The best way to know which component of your policy applies is to consider what happened. No matter who is at fault for an injury, medical payments coverage makes payment of the claim from the injury. This generally applies to smaller claims. Many policies have claim limits between $1,000 and $5,000.
This type of coverage applies, then, when someone visits your home and suffers an injury. For example, a friend burns himself on the stove, requiring medical care. This person does not live there but needs medical attention. This coverage takes care of the hospital bill as long as it is within the claim limit.
What Does Liability Insurance Do?
Let’s say that person suffers a burn, but it’s severe. They need significant surgery for the tissue repair. Or, the person suffered the burn because you spilled hot water onto them near the stove. In this case, the claim amount is much higher. You may be legally responsible for the loss, since you spilled the water. When this happens, personal liability insurance applies. Most policies have between $100,000 and $500,000 worth of this form of liability insurance, though you can augment your standard liability benefits with extra coverage as provided by
Be sure to check your home insurance policy. It lists the details of all types of injury claims you may be able to file. Be sure you have enough coverage, too. Your agent can help you verify the amount you have.