Most of us know the main reason for buying homeowners insurance is to have our homes rebuilt in case of a major catastrophie.  What I’ve learned is that many people don’t understand the importance of the Medical Payments to Other or the Personal Liability parts of their policy.

Medical Payments to Others covers small medical bills of a guest who is injured on your property. It covers on an “Excess” basis. That means that if your guest has health insurance it would pay first. This coverage is usually only $1000.  I would suggest raising it to $3-$5000. I want to be sure that if there’s an ambulance involved that there’s still enough money left to take care of the small things like stitches or setting a broken bone without having to besued or paying the bill out of my pocket.

Your Personal Liability helps pay the cost of your defense if you were to be sued. It also pays for things medical bills in access of what the Medical Payments to others covers

I had an attorney explain it this way; when you get sued, you have to disclose all of your assets. You not only have to disclose it to the judge and your attorney, but to their attorney as well. That’s right, they know about your 401(k), your investments, your CDs, Life Insurance, rental properties etc..

The best thing to do is to make sure that your Personal Liability limit is set well above your net worth (everything you own minus everything you owe)

We’ll talk more about this in person if you like. Jst give me a call at (231) 744-9099 or just start by checking out www.muskegoninsuranceagent.com