What is the Difference between Liability and No-fault Medical Coverage?
One area that seems to cause some confusion within California home insurance policies is the difference between liability and no-fault medical coverage. Here’s a brief introduction.
Liability – The liability component of your home insurance may provide financial protection should you be sued and found liable where a visitor or guest is injured in your home, by a member of your family, or by your pet. Liability coverage is generally between $100,000 and $300,000 and it can cover court costs and ordered payments. It is possible to purchase an umbrella liability policy for extra coverage up to $1 million.
No-fault Medical – This is applicable only in the event that someone was injured while on your property. It does not apply for any injury caused by your family or pet away from the home. No-fault medical coverage provides a limited amount (usually between $1000 and $5000) towards medical expenses. The injured party would generally provide their medical bills directly to your insurer for payment. It’s a simple solution where there are minor injuries and it can keep you out of court.
It’s advisable to read your California home insurance policy thoroughly to understand exactly what liability and no-fault medical coverage you have in place. Should you need clarification on any point, be sure to contact Remland Insurance for any of your insurance needs at 714)532-3341
