When your home is for sale you’ll have many prospective buyers walking through the property on any given day, exploring both the inside and out. They will poke and prod, crawl and crouch as they examine every crevice to decide whether it's a property they wish to invest in. Although these individuals will not be left unattended, since you or your real estate agent will be with them, they could be injured while on your property. It is generally your responsibility to pay damages from injuries that occur while you own the home, so it's important that you have the right liability insurance going into the home sale process.
Liability in Home Insurance Policies
Your home insurance policy has many limits; one of them may be for contents coverage, one for dwelling coverage, one for loss of use, and one are for liabilities. Check your insurance policy to see your liability insurance limits and make sure that they are reasonable when compared to the additional risk you take on when you invite strangers in to evaluate your home.
Umbrella Liability Insurance
You may wish to consider an umbrella liability insurance policy in the event that your current home insurance liability limits are too low. An umbrella liability insurance policy is a separate policy that steps in to pay claims that exceed the liability limits of your home insurance policy. They have their own limits which can range from $1 million or more. Best of all, they don’t just cover your home liability but also your auto liability.
Because the coverage you need is temporary, securing an umbrella liability insurance policy may be a better strategy than increasing the liability insurance coverage on your home insurance policy. Umbrella policies can also be very inexpensive, increasing your overall carrying costs very little.
It can be difficult to determine the best way to protect yourself from liabilities when you put your home on the market. Luckily, there is no need for you to make this decision alone. Give us a call and we can discuss your current limits and help you decide whether they keep pace with your risks. We can also discuss the benefits of having an umbrella liability insurance policy during the home sale process.