Home liability insurance coverage is part of your Ontario home insurance policy. If there’s an accident on your property, liability insurance can help you cover the costs so you aren’t left out of pocket. But what’s protected under liability insurance, and are all accidents covered?
Keep reading to learn why personal liability coverage in Ontario matters and how much coverage you should get. We’ve also included tips for risk reduction in your home to reduce the likelihood of accidents and prevent the need to file a claim.
Why Is Personal Liability Insurance Important?
Many homeowners know that home insurance protects your house and personal possessions from different covered perils. But that’s not all – it also has personal liability coverage to cover costs related to accidents on your property.
Here’s why you should have personal liability insurance and how it helps in these instances:
Examples of common liability claims include:
- Slip-and-fall accidents due to snowy or icy conditions on your property
- Scratches or bites from pets
- Falling tree branches during a storm that damage your neighbour’s adjacent property
- Injuries suffered by guests after serving them alcohol or cannabis
What’s Excluded from Personal Liability Insurance?
Not all incidents are covered by a personal liability insurance policy, even if they’re accidents that result in injuries or damage. Here are some common exclusions:
How Much Personal Liability Coverage Should I Get?
It’s generally recommended to have at least $1 million in personal liability coverage. If possible, consider higher limits to ensure more comprehensive protection, especially if some features or improvements are likely to cause accidents in your home. Remember: any amount that exceeds the set limit in your policy will be your personal responsibility.
Examples of things that may increase your risks and require higher coverage include:
- Swimming pools
- Trampolines
- Outdoor play areas
- Construction projects
Tips on Reducing Personal Liability Risks
Personal liability insurance provides homeowners with essential protection, but there are also proactive steps that you can take to minimize risks. Follow these measures to avoid accidents and prevent claims:
Key Advice from MyChoice
- Personal liability insurance isn’t mandatory, but it’s still worth getting under a home or tenant insurance policy to cover the steep costs of legal fees and medical expenses.
- Liability insurance doesn’t cover medical expenses for you and your household members. It only applies to medical expenses incurred because someone else (such as a guest or visitor) got injured.
- Increasing your liability coverage limit may give you more peace of mind and typically doesn’t significantly increase your premiums. Check with your insurer to see the quote difference if you bump up the amount to see if it fits your needs and preferences.