As homeowners, we often invest time and resources in creating a comfortable and secure living environment. However, unpredictable events can occur, posing a threat not only to our property but also to our financial stability.

What is liability insurance?

Home insurance helps restore your insured property in the event of a loss, but the home insurance policy may not include liability insurance to compensate for damage caused to your neighbors or other third parties. It is therefore advisable to always supplement home insurance with liability insurance.

Liability insurance helps cover damages resulting from your property for which you are responsible. For example, if a pedestrian slips on the sidewalk in front of your building due to ice, or if snow, ice, or any loose object falls from the roof and injures a passerby or damages a car parked in front of your building. Liability insurance helps protect you and your financial stability even in the event of a flood in your apartment that causes water damage to your neighbors. Such incidents can result in significant claims from neighbors or other affected individuals, putting the property owner in a difficult situation.

When buying a new home, it is common for lenders to require homeowners to insure the acquired property. For the bank, it is important to ensure the preservation of the property serving as collateral for the loan. However, insurance policy details may vary, so it is crucial to carefully read and understand the protection offered by your insurance policy. BTA Insurance recommends that both new and existing homeowners be proactive in exploring various home and liability insurance options, rather than simply accepting the first insurance offer that comes their way, as is often the case. It is important to take the time to familiarize yourself with the terms and conditions before signing the insurance contract, not after.