When we think about home insurance, most of us focus on fire, theft, or storm damage, but liability claims can be just as devastating, especially when legal action is involved.
Liability: What You Need to Know
Liability insurance is a vital part of your home insurance policy, especially if someone gets injured on your property. If you're found legally responsible, your policy typically covers legal fees and court-ordered expenses like medical bills, provided the incident was accidental. Intentional harm, however, is not covered.
It's also important to understand that liability coverage does not extend to medical costs for you or members of your household. It only applies if someone outside your home is injured and you are sued.
Home-based businesses usually aren’t included in standard home insurance policies. If you’re operating a business, like a hair salon in your basement or an informal daycare, your liability exposure is higher, and you’ll likely need additional coverage. Be sure to inform your insurance provider so they can recommend proper protection, whether it’s an add-on to your current policy or a separate business insurance plan.
Liability coverage is generally affordable. It makes up only a small portion of your total home insurance premium. Since premiums vary based on many factors, including your risk profile, your premium may differ from your next-door neighbour's or the person down the hall. That’s why personalized advice from your broker is key.
In Ontario, common sources of home/condo/tenant liability lawsuits include:
- Dog Bites or Animal Attacks: Homeowners are often held liable for injuries caused by their pets, even if the animal had no prior history of aggression.
- Slip and Fall Accidents: Icy sidewalks, loose stairs, or uneven walkways can lead to serious injuries and lawsuits if someone gets hurt on your property
- Pool-Related Incidents: Whether it’s a guest who slips on a wet deck or a child who wanders into a backyard pool, water-related accidents can result in significant legal and financial consequences.
These incidents can cost homeowners, condo owners or tenants thousands in legal fees, damages, and medical bills if found liable.
That’s why adequate personal liability coverage on your home insurance policy is so important. At Gibb Insurance Brokers in Amherstburg, we recommend homeowners carry at least $1 million in liability coverage, but for many, $2 million or more may be a safer choice.
Take Action to Reduce Your Risks
1. Maintain Walkways and Driveways: Clear snow and ice promptly in the winter, and repair cracked or uneven pavement. Slips and falls are one of the most common sources of liability claims in Ontario.
2. Secure Your Pool Area: Install proper fencing and self-latching gates around pools, and never leave children unsupervised. Pool-related accidents can lead to serious injury—and serious legal consequences.
3. Control Your Pets: Even friendly dogs can bite. Always supervise pets around guests and ensure your property is properly fenced. Consider signage to warn visitors of pets on-site.
4. Keep Your Property in Good Repair: Loose railings, broken steps, or poorly lit entryways can lead to preventable injuries. Conduct regular home inspections and fix hazards promptly.
5. Host Responsibly: If you're entertaining guests, especially when alcohol is involved, keep safety top of mind. You could be held liable if an intoxicated guest injures themselves or others.
6. Disclose Hazards: Warn visitors about known risks such as uneven ground or construction zones when they come onto your property.
7. Inform Your Insurer About Any Changes: Running a home business? Renting out part of your home? Doing a home renovation? These changes can affect your liability risks and your insurance coverage. Always keep your broker in the loop.
We help you understand your risks and recommend coverage that protects not just your home, but your finances and future. Don't wait for an accident to find out you're underinsured. Contact Gibb Insurance Brokers today for a liability coverage review that gives you peace of mind. 519-736-8228