Before investing in a home insurance policy, you should take a moment to go over the different types of coverages that are available in Canada. Learning about the different types of insurance coverages that are available can help you make the right choice when you need to update or purchase a policy.
At Surex, we receive several questions about various types of insurance coverages from curious policyholders. One of the most frequent questions our team gets is, “what is personal liability in home insurance, and why is it important?”.
We'll provide an answer to this question, and several more, in the following paragraphs.
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Continue reading to learn more about personal liability coverage in Canada.
What is personal liability in home insurance and why is it important for homeowners?
Personal liability insurance is a type of home insurance coverage that financially protects homeowners from legal fees resulting from third-party property damage or bodily injuries. This type of coverage also covers medical expenses.
The majority of home insurance policies in Canada automatically come with the minimum level of personal liability home insurance coverage. However, most insurance experts recommend increasing your personal liability coverage levels for additional protection (more on this later on).
Now that you know the answer to the question, “what is personal liability in home insurance?”, it's time to go over some of the typical examples of when you may need to use it.
When do you need to use liability home insurance in Canada?
There are several instances where you may need to rely on your personal liability coverage. Some examples of these instances include:
- Slipping on an icy walkway (that you are responsible for maintaining)
- Accidents or injuries involving a swimming pool
- Dog bites and similar pet-related injuries
- Fallen trees or tree branches
- Tripping on a loose rug, carpet or miscellaneous item on the floor
- Injuries to guests (after providing them with alcohol)
Although most of the examples listed above generally occur on policyholders’ properties, some of these accidents can happen anywhere (like dog bites, for example). That’s why it’s important to know when you are covered and when you aren’t.
*Please note that some insurance companies will not cover injuries or property damage related to certain dog breeds, like pit bulls. Reach out to your home insurance company or insurance broker to confirm if your furry friend is covered. You can also ask your home insurance company or advisor about adding canine liability insurance to your policy.*
Example of when you need to use personal liability coverage in Canada
Here’s an in-depth example of when you’ll need to use your personal liability coverage:
A wet winter storm leaves a thick sheet of ice on your walkway (which you, as the homeowner, are responsible for maintaining). One of your neighbours accidentally slips on the ice before you have a chance to apply de-icing salt. The slip causes your neighbour to break their ankle, and they sue you for neglecting to maintain the walkway.
In this situation, your home liability insurance coverage can cover all (or a portion) of the legal and medical fees related to the event.
How much personal liability insurance coverage should you have in Canada?
As mentioned earlier, most home insurance policies in Canada automatically come with the minimum amount of personal liability coverage.
However, if you get sued for a serious injury or third-party property damage, the minimum coverage may not be enough to cover all of the related legal and medical expenses. In turn, you may end up paying for some of the fees out of pocket.
Because of this, most insurance experts recommend opting for higher coverage levels, preferably around $2 million. Having more coverage gives you additional financial leeway if you get sued for a third party injury or property damage.
What’s the difference between personal liability coverage and personal property coverage in Canada?
As you now know, personal liability coverage financially safeguards policyholders from legal fees. On the other hand, personal property coverage financially protects policyholders from losses related to your home, possessions or vehicle.
Having both personal liability and personal property coverage is highly recommended, as it further increases your level of financial protection. In turn, you and your family get more peace of mind.
Speak with your insurance company or insurance advisor to learn more about personal property coverage in Canada.
How can policyholders get quotes for personal liability coverage in Canada?
Finding quotes for personal liability coverage is easy when you team up with the best insurance broker in your area.
Insurance brokers work with an extensive selection of policyholders and insurance companies from across the country. Working closely with the best insurance companies allows reputable insurance brokerages to provide policyholders with some of the most competitive quotes in the Canadian insurance industry.
Not to mention, insurance brokerages are fantastic sources of information. If you have questions about your policy, you can always rely on an insurance broker.
Do you want to get access to a personal insurance broker? Contact one of our team members at Surex!
Team up with a Surex insurance advisor to save up to 25% on home insurance in Canada
Now that you know the answer to the question, “what is personal liability coverage in home insurance?”, you can start comparing quotes with an insurance broker.
If you’re looking for the best insurance broker experience in Canada, you can contact a Surex insurance advisor. At Surex, we pair policyholders with their own insurance advisor. So when you contact us online or over the phone, you can expect to speak with the same person every time.
Having access to a personal insurance broker not only simplifies the process but also helps you save time. Instead of reexplaining your situation, you and your personal insurance advisor can jump right into the important details.
Contact one of our trusted insurance advisors today to get competitive quotes from the best insurance companies in Canada in less than ten minutes. While you’re comparing quotes with your advisor, don’t forget to ask about potential bundling opportunities. Bundling multiple policies (home and auto, for example) can lead to enormous savings (sometimes as high as 25%).
