What is medical coverage?
<lingo>Home insurance medical coverage protects homeowners from having to pay up to hundreds of thousands of dollars in others’ medical bills, should someone be injured on the homeowner’s property. It also protects against possible litigation by those who may be injured on their property. Medical coverage in a home insurance policy often comprises two parts: Medical payments to others and personal liability coverage. Medical payments to others is coverage that protects you from small claims while personal liability coverage is for larger injuries and claims. Medical payments coverage covers any small injuries, regardless of who was at fault. Liability coverage only provides coverage for injuries that the homeowner is liable for.</lingo>
Medical coverage clearly and briefly explained
Most home insurance policies come with medical payments coverage, but liability coverage is not always standard. Still, if you have a mortgage on your home, it’s almost guaranteed that your lender will require you to have liability coverage — and it’s a good idea anyway.
Medical payments coverage will cover you for small claims, but liability coverage will protect you if a large accident occurs and you are liable. If you don’t have this coverage, you could be liable to pay hundreds of thousands of dollars out-of-pocket, and you may even lose your home.
Let’s say a guest cuts their finger while helping you prepare dinner in your home. They have to go to the emergency room for stitches. Medical payments coverage would cover these medical costs, pending they do not exceed your limit. Because this type of coverage deals with small claims, limits are usually between $1,000 and $5,000 — enough to cover something like ER stitches.
<twitter>Home insurance medical coverage protects homeowners from having to pay up to hundreds of thousands of dollars in others’ medical bills, should someone be injured on the homeowner’s property.</twitter>
On the other hand, let’s say a guest in your home falls from the second floor because of your faulty balcony. They break several limbs, require surgery and rehab, and have to take unpaid time off work. This is where personal liability coverage would protect you as it has much higher limits — generally between $100,000 and $500,000.
Moreover, whereas medical payments simply pay small medical bills, liability coverage can take care of medical bills plus any lost wages, possible legal costs, or death benefits. Both medical payments coverage and liability coverage are crucial parts of your home insurance policy.
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