Tag: property

Home Insurance : Personal or Public Liability?

When you purchase a home insurance, many home owners always ask if the last clause is necessary (personal/public liability); which we will recommend that you read our other post. (But do remember to have adequate coverage )

Today, we will cover what the differences are:

Personal Liability

  1. Definition: Personal liability coverage protects the policyholder against claims or lawsuits for bodily injury or property damage that the policyholder or their family members cause to others.
  2. Coverage Examples:
  • If a visitor slips and falls inside your home and gets injured, personal liability coverage would help pay for their medical expenses and any legal fees if they sue.
  • If your child accidentally throws a ball through a neighbor’s window, this coverage would help pay for the damage.

This coverage generally follows the policyholder, meaning it can apply to incidents that happen both on and off the insured property.

Public Liability

  1. Definition: Public liability coverage is primarily concerned with third-party claims for bodily injury or property damage occurring on the insured property. It is designed to protect against incidents where the public or visitors might be injured or have their property damaged while on the premises.
  2. Coverage Examples:
  • If a delivery person trips on a broken step at the entrance of your home and gets injured, public liability coverage would handle their medical costs and any legal action.
  • If a guest’s car is damaged by a falling tree branch on your property, this coverage would apply.

This coverage is more specific to incidents occurring on the property that you own or occupy, involving third parties who are not part of your household.

Key Differences

  • Who is Covered:
  • Personal liability extends to the policyholder and their family members, potentially covering incidents away from the home.
  • Public liability focuses on third parties (non-family members) who are injured or have property damaged while on the insured property.
  • Where Coverage Applies:
  • Personal liability can apply anywhere, depending on the policy terms.
  • Public liability is typically restricted to the insured property.
  • Types of Incidents:
  • Personal liability covers a broader range of incidents that can occur both on and off the property.
  • Public liability is more concerned with incidents involving third parties on the insured premises.

In summary, personal liability is a more comprehensive form of coverage that can protect the policyholder and their family members in various situations, whereas public liability is more specific to protecting against claims from third parties on the insured property. Both are crucial components of a robust home insurance policy.