5 Most Common Homeowners Insurance Claims

Your home has many potential hazards, from slippery steps to dog bites. If someone gets injured on your property and sues you, your home owners liability insurance can help protect you by covering legal fees and any judgments against you up to your policy's limit.

It's always a good idea to contact your insurance agent to discuss what is the right amount of personal liability coverage for you. According to the Insurance Information Institute (III), a typical homeowners or renters insurance policy includes a $100,000 minimum for liability. For added protection you can add a personal umbrella liability policy. A $1 million umbrella liability policy can be purchased for between $150 to $300 a year on average.

So as you ponder liability limits and the possibility of extending your coverage with an umbrella, let us take a look at the 5 most common claims people make against their home liability insurance.

1. Dog Bites

Your home owners insurance policy includes liability coverage for any damages or injuries caused by you, the home owner, or any other members of your household. This includes Fido. According to the III, the average cost for a dog bite per claim in 2012 was approximately $29,752.

It is common for insurers to excluded certain dog breads that are deemed a high risk. Some breeds that are commonly excluded are Pitbulls, Akitas and German Shepherds. This isn't because the insurance industry doesn't like dogs. It is because these large and powerful breeds can cause serious injuries when they do bite and they have a higher propensity for doing so. Some insurers may be willing to insure these breeds with stipulations like passing a good canine citizen test. It's important to talk to your insurance agent to find out more about insuring a high risk breed.

2. Home Accidents

Injury accident claims are a frequent claim filed against homeowners. Even if an uninvited guest like a sales man comes to your front door and slips and falls on unshoveled steps, you can be held liable for any injuries they sustain. Essentially, any negligence on your part that causes injury or damage to an individual can lead to you be held liable for damages.

Another example of a home accident caused by the homeowners negligence is if you have a loose stairway railing that causes a guest to fall down the stairs. Because you did not warn the guest of the issue with the railing you are responsible for any injuries they sustain.

Most home accidents don't typically result in liability insurance claims, but home mishaps are extremely common. According to the National Security Council, in 2011 almost 19 million Americans, or one in 17 people, have experienced an accident in the home that required some type of medical assistance.

Many renters are under the impression that only homeowners can be sued for injury accidents. If you live in a home or an apartment, no matter who the owner is, you could be held responsible. It is important for renters to protect themselves and purchase renter's insurance.

3. Falling Trees

During inclement weather, one major hazard is falling trees. This is especially true if you live in a neighborhood that has large, mature trees.

If a tree on your property falls onto your neighbor's property and causes damage to their home or car, you can be held liable for a home liability claim. If a tree on your property is hazard, for example dead limbs that may fall, it is up to you to trim the branches or even have the tree removed entirely if need be.

It is not uncommon for tree damage claims to cost hundreds of thousands of dollars. If a tree on your property falls on the neighbor's car and it is totaled, you may responsible for the full value of the car.

4. Intoxicated Guests

You decide to host a party at your home and one of your guests becomes extremely intoxicated. You could be held responsible for any damage or harm to another person or property that guest causes. Claims due to intoxicated guests will typically be covered under a standard homeowner's policy.

Homeowner's and renter's insurance policies typically include host liquor liability insurance. If you are hosting an event in your home or at another location, this coverage is meant to cover you, the policy holder, in the event a claim is filed against you due to someone being served too much alcohol.

According to the III, these laws known as social host liability laws, have been adopted by 37 states, although they vary from state to state. These laws allow people injured in car accidents to sue the people or businesses who served liquor to the intoxicated driver.

Some suggestions to protect yourself: hire a professional bartender that can control the amount of alcohol your guests consume, serve alcoholic beverages during dinner only, or stop serving alcohol two hours before the party ends.

5. Injured Domestic Workers

If you hire someone to manicure your lawn or clean your home, you have the potential for a liability claim if they are injured while working on your property.

Some domestic workers will have their own workman's compensation insurance which will cover lost wages and medical expenses if they are injured on your property. However, many independent contractors aren't required to have worker's compensation. For example if you hire the neighbor's son to mow your lawn or a friend of a friend to help clean the house. If you are found to be liable for any injuries they incur while working for you, your homeowner's insurance may be required to pay any claims.

It's important to check with your insurance agent to see if local laws require you to have worker's compensation insurance.