Q:Question I have enough insurance to rebuild my home if needed, but I haven’t given much thought to homeowners liability coverage. How much should I consider on my policy?

John Drakulich is a Farmers Insurance^® agent in Sparks, Nevada. He explains things to consider in selecting an amount of liability coverage on your home insurance policy.

A:Answer When you’re considering how much homeowners liability coverage you may want, think about your entire net worth. Liability coverage is often aligned with the value of all of your assets — not just your home. Most home insurers offer up to $500,000 in coverage on home policies. If you need more, you can choose a personal umbrella policy that gives you $1 million to $10 million in additional liability coverage. 

Keep in mind that homeowners liability coverage extends beyond the home itself. It provides coverage for your personal liability in most situations, except when you’re in your vehicle or at work. If you’re riding a bicycle and hit a pedestrian, or on the golf course and your ball lands on someone’s head, your homeowners liability coverage can help you protect you from loss. This coverage follows you anywhere in the world.

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