Mention Homeowner’s insurance and most people think of protection against property lost to fire, burglary, and other perils. Few consider the importance of the policy’s Liability insurance. This protection (with it’s accompanying Medical Payment coverage) guards the insured family from claims of negligence.

Let’s say you’re holding a yard sale. While rummaging through your goods, a visitor cuts his foot on a rock and sues you. Or a satellite-dish installer falls through the roof and sues you for failing to warn him that your roof was weak. Your Homeowners policy will handle the defense of these claims and make small settlements.

Families are constantly involved in liability-generating situations: backyard sports, at-home swimming pools, pets, barbecues, and so on all can cause injuries. Homeowner’s Liability protection even extends beyond the home premises to cover family members and certain other household residents from many activities.

However, the medical payments available through the Homeowners policy’s Liability coverage do not apply to family members. This protection is best left to the family’s Health insurance. Instead, it pays for first-aid coverage when someone outside the household is hurt on your property for instance, when the cleaning lady trips on the stairs, your take-charge neighbor lights the barbecue and seriously burns himself, or your dog nips a guest.

When a non-family member is hurt, the family doesnt have to be proved negligent for the medical payments to kick in. This coverage helps to deter claims and lawsuits; an injured person who is given free medical help is less likely to make a claim later.

Policy limits for liability and medical payments are important considerations for the homeowner. The standard limit of $100,000 for Liability claims and $1,000 (possibly as high as $5,000) for medical payments is inadequate in many parts of the country. Fortunately, higher limits are available via an Umbrella Liability policy. Umbrellas raise your limits for Liability, Auto, Homeowners, and more by at least $1 million, fortifying you against serious damage claims. And besides extending coverage that already exists, Umbrella policies may also insure whole new areas.

Umbrella policies are quite affordable. Premiums are generally low because most claims are covered by the underlying policies. But be warned: One Umbrella does not fit all! You must choose the policy that best suits your needs from the wide variety available.

Purchasing an Umbrella policy is a wise move for anyone but it’s imperative for those who could lose a good deal of assets because of asingle negligence claim.