Liability under your home insurance isn't always well understood until someone files a claim against you. Whether it's a neighbor who was bitten by your dog or a mailman that slipped on your porch, these claims can become exceptionally expensive (especially if they drag on for a while). Keep the following in the back of your mind so you can be a little smarter about protecting yourself.

How This Works 

Your home insurance policy will have a personal liability section that will apply to either property damage or physical injury. Your coverage is extended to both when you're at home and when you're out and about. If you're sued, your carrier will provide funds to defend you and/or settle the case. Unlike standard repair claims for your property, there's typically no deductible for liability costs.

Standard Coverage 

Every policy and carrier will have their own rules when it comes to coverage, but the standard plan will cover up to $300,000 for a liability claim. Your policy may also include medical payments of either $1,000 or $5,000. This option is designed for small claims that occur at the home, whether you shared fault in the incident or not. So if someone needed stitches after falling on one of your children's stray toys, medical payments would come in handy. It's there to prevent a much bigger lawsuit from even occurring. Larger claims would be filed under liability as opposed to medical payments.

Weighing the Odds 

Because even one lawsuit can quickly spiral out of control, homeowners need to be careful when it comes to how much liability coverage they have. People can sue for any number of reasons, and it's not always obvious to the courts if those accusations are frivolous or fraudulent. Some people won't take the chance and will either increase the limits on their home insurance policy or purchase umbrella insurance as a means of getting additional protection. 

Liability is something that every person needs to take seriously, whether they live in $100,000 home or $1 million mansion. Few homeowners ever expect their child to pour water on a family member's laptop or for their dog to bite someone without provocation, but these things happen on a regular basis. Having enough to cover it all can save you from being embroiled in legal hot water.