Property Liability Insurance Vs. Homeowners Insurance

Insurance helps pay for repairs after a disaster.

Homeowners insurance covers the cost of repairing a home after damage caused by a natural event. Property liability insurance pays claims by people injured on or by your property. A homeowner can have both types of insurance on the same residence.

Homeowners Insurance

Homeowners insurance policies cover fire and storm damage. Insurance coverage for damage caused by flooding, volcanoes, mold, earthquakes and termites can be purchased as a rider on the homeowners insurance or as a separate and additional policy.

Property Liability Insurance

Property liability insurance pays claims caused by negligence in maintaining the property. Property liability insurance covers events like someone tripping on your sidewalk or a child getting injured in your swimming pool. Liability insurance can also cover injuries or property damage caused by a family member, such as an assault.

Similarities

Both types of insurance have dollar limits on what they will pay out per occurrence. Property liability insurance can also be purchased as a rider on a homeowners insurance policy. Neither type of insurance covers deliberate damage caused by the policy holder.

References

• "Insurance for Dummies;" Jack Hungelmann; 2009
• "Legal Guide for Starting & Running a Small Business"; Fred Steingold; 2009
• "Working for Yourself"; Stephen Fishman; 2008
• "The Complete Idiot's Guide to Personal Finance in Your 20s and 30s"; Sarah Young Fisher, Susan Shelly; 2002

Resources

• "The Complete Book of Insurance"; Richard William Zevnik; 2004