After a fun, but long day at the beach, you need to bathe the kids before tucking them in for the night. After getting the water temperature just right, you set out to round up your children for bath time. You get distracted when the phone rings and it’s your mother then you get further distracted while digging through your luggage trying to find pajamas for the kids. When you finally return to the bathroom several minutes later, it’s painfully clear that not all faucets push out water at the same rate, as your faucet at home. The water is and has been pouring out of the tub for a good while and, Uh-Oh, you have a really big problem. The water has soaked into the carpet and is dripping through the ceiling from the second floor bathroom. These scenarios and many like it, happen from time to time, when you’re renting space in a hotel, condo, mountain cabin, or beach house. What many insurance consumers don’t know is that the “Personal Liability” coverage on their Homeowners or Renters policy will typically respond to losses, such as this. Depending on the carrier and product that’s been purchased, the policy will normally respond to the loss with a first-dollar claim payment meaning no out of pocket expenses for you. However, in all fairness, you should know that Personal Liability claims can be a heavily weighted surcharge factor at renewal time. Depending on the severity of the damage and the facts of the loss. So, carefully consider the extent of damage before turning it over to your insurance company.
This coverage can be sold in limits from $25,000 up to $1,000,000 and a personal liability umbrella could provide even more liability coverage in the event your happen to flood the entire hotel or your burn pile gets away and burns down the neighborhood. As you might suspect, each carrier has it’s own variety of exclusions on this line of coverage, such as, Dog bites, punitive damages, pollution, assault, to name a few. It’s good to know that you have this coverage, that you have sufficient coverage, and it’s very good to have a good understanding of which events are excluded by the product that’s protecting you and your assets.