Does Homeowners Insurance Cover Personal Injury to the Homeowner?

Homeowners insurance includes liability coverage for injuries to visitors, but won’t pay medical expenses for household members.

More than 39 million people in the United States end up in the emergency room every year, and a majority of those visits are from falls and other accidents at home.¹

Homeowners insurance is designed to pay for covered damage to property and injuries to visitors, but not to pay for injuries to the policyholder or other household members.

If your home is free and clear of any mortgages, you don’t have to carry homeowner’s insurance. However, most property owners want the financial protection an insurance policy can provide.

When Homeowners Insurance Covers Personal Injuries

Home insurance policies will cover personal injury claims, but the coverage is solely for bodily injuries sustained by friends, neighbors, delivery persons, and others invited onto the property. Your policy helps you indirectly by covering their injuries and defending lawsuits.

That coverage does not extend to the homeowner, family members living at the property, or minor children in your care.

Your homeowner’s policy will not cover injuries to you or members of your household.

Most policies won’t cover injuries related to a home business. If you have a cake decorating business in your home and a client slips and falls carrying a box of cupcakes to their car, your client’s injuries may not be covered.

Of course, your homeowner’s policy will not cover injuries to anyone who entered your home illegally, even if you had to use deadly force to defend your home and safety.

Medical Payments Coverage: Med-Pay

The medical payments portion of your policy provides small coverage limits, usually from $1,000 to $5,000, to pay medical bills for non-household members injured on your property.

Med-pay will usually pay even when the circumstances of the injury are not your fault. Med-pay will pay medical expenses but will not pay for lost wages or pain and suffering.

Example: Med-pay covers visitor’s broken wrist

John carried homeowner’s insurance with $100,000 of personal liability coverage, and $1,000 of Med-pay coverage. John’s son Todd invited some friends over to shoot hoops in the family’s driveway.

While playing, Todd collided with his friend Sammy. Todd broke his collarbone and Sammy broke his wrist.

Sammy’s medical bills came to $950. Sammy had no reason to sue Todd’s father because there was no negligence. It was just a friendly game of hoops. Instead, Sammy filed an injury claim under the Med-pay portion of Todd’s homeowner’s insurance policy. The insurance company paid Sammy’s medical bills.

Todd’s medical bills came to $800. Todd was not eligible for the Med-pay portion of his dad’s policy because he is a member of the household. He was covered under his dad’s health insurance plan.

Liability Insurance Coverage

Homeowner’s liability insurance covers $100,000 or more (depending on how much coverage you purchase) per occurrence for premises liability lawsuits alleging that your negligence caused the injuries.

The insurance company won’t pay to defend you when injuries to others are caused by intentional acts or criminal activities like assault, sexual abuse, or illegal drugs.

You may choose to purchase additional personal liability insurance, called an umbrella policy, that provides liability protections in excess of your homeowner’s coverage and car insurance limits.

Example: Insurance Coverage for Dog Bites

Sue had a homeowner’s insurance policy with $1,000 in Med-pay coverage and $300,000 in personal liability coverage.

A UPS deliveryman named Frank came to Sue’s home to deliver a package. As Frank walked toward the front door, Sue’s Doberman jumped the fence and attacked him, causing serious injuries to Frank’s face and hands.

Blaming Sue for not keeping her dog properly fenced in, Frank filed a lawsuit against Sue for $150,000 to cover his medical bills, out-of-pocket expenses, lost wages, and his pain and suffering.

Sue’s homeowner’s insurance company hired an attorney to defend Sue in court. Frank’s claim was settled before going to trial. The insurance company paid his claim under the personal liability coverage on Sue’s policy.

Who Counts as a Household Member?

Just like any other insurance policy, homeowner’s insurance policies are contracts between the policyholder and the insurance company. State lawmakers usually require contracts to be in “plain language” so people can understand what they are getting into.

Homeowner’s insurance policies will not cover personal injuries suffered by the policyholder and members of the policyholder’s household.

Generally, that means everyone living under the same roof. The household members don’t have to be legally married. Couples who cohabitate and their children are considered members of the same household.

Household Members May Not Live With You Every Day

Shared custody: Children of parents with shared custody may be considered members of both households when it comes to insurance. So long as you have sleeping quarters in your home for one of your kids, they probably would be excluded from injury coverage under your homeowner’s policy.

College students: Your daughter may be living on campus in another state, but she remains a member of the household in her primary home. If she’s home for spring break and breaks an arm slipping on a spill in the kitchen, her injury probably won’t be covered by your homeowner’s policy.

Not Every Relative is a Member of the Household

Uncle Andy celebrated Thanksgiving dinner at your home. While walking into the dining room, he tripped over an extension cord and broke his arm in the fall. Will your homeowner’s insurance pay for Uncle Andy’s injuries?

Not if Uncle Andy is dependent on you for his care and does not have his own home. If you are the person who makes his business and medical decisions, Andy may be a member of your household, even if he now lives in a nursing home and only visits for holidays.

On the other hand, if Uncle Andy lives independently in his own home, he would be considered a guest, even though you may be related. The insurance company would not consider him a member of your household.

It all boils down to the policy language. If there’s a dispute over insurance payments, talk to an experienced personal injury attorney about your homeowner’s insurance coverage.

Your Duties to the Insurance Company

Your homeowner’s insurance policy is an important contract. You have a contractual obligation to notify your insurance carrier of potential claims, and you’re also required to cooperate with the insurance company’s investigation into what happened.

Another important obligation is to “mitigate damages” which is a fancy term that means you’re supposed to keep things from getting worse. If your dog got through a hole in your fence and bit the delivery guy, you should fix the fence right away.

If someone is injured on your property, you are obligated to notify your insurance company as soon as possible. Don’t put it off.

It’s understandable that you might worry about your premiums going up, but if you’re slapped with a lawsuit because your dog bit the neighbor’s kid, the liability insurance premium will be the least of your worries.

If you are served with legal papers (usually by mail), notify your insurance company immediately. Legal papers like summons, notices, and subpoenas are time-sensitive. If you ignore them, the court can find you guilty by default.

Whether you have a mortgage or own your home free and clear, be sure to have a copy of your current policy documents. The details of your coverage might change from year-to-year.

Read your policy and keep it in a safe place. It’s also a good idea to keep proof of your belongings updated each year.

Home Insurance Property Damage Coverage

It pays to know what kinds of coverages are included in your homeowner’s insurance policy. As with any insurance, higher levels of coverage come with higher premiums. Deductibles may vary.

Interior and exterior dwelling coverage: Every policy has this type of coverage. The dollar limits may vary. Typically, you’ll buy enough coverage to cover the cost of your home, not including the value of the land.

Most policies cover the cost to repair or rebuild damage caused by fire, wind, hail, and vandalism, and water damage from frozen pipes or appliance leaks. Policy exclusions typically include damage caused by earthquakes, floods, mold, or poor home maintenance.

Loss or damage to personal belongings: Your policy may pay the replacement cost or the actual value of clothes, furniture, appliances, and other personal property ruined by a covered loss, up to the policy limits.

You may need special coverage for high-dollar collectibles and fine jewelry.

You must be able to show proof of your belongings, their age and their value. These days, video and photographic records of your belongings can be easily stored digitally in the cloud, or on a disk stored outside of your home.

Lodging: Some policies pay for hotel or house rental fees while your home is under repair. The coverage may even provide a daily allowance for meals.

Homeowners Insurance and Mortgages

If you have a mortgage, you have homeowner’s insurance. Every lender requires homeowner’s insurance to protect the value of the property, in case you default on the loan.

Most of the time, your insurance premium and property taxes are rolled into your house payment. Mortgage servicers put that part of your monthly house payment into an escrow account. Your taxes and insurance are then paid out of the escrow account when they come due.

Your mortgage lender is named on your homeowner’s insurance policy. If your home is severely damaged, the mortgage servicer makes sure the house is fixed by doling out portions of the insurance money as the repairs are being made. The insurance company will never pay you directly for property damage if you have a mortgage.

When You Need to Hire an Attorney

Your homeowner’s insurance company has a duty to defend you when an injured person files a lawsuit against you for covered injuries. If you’ve been sued and your insurance company won’t help you, talk to an attorney. You’ll also need a lawyer if the insurance company disputes coverage for damages to your home.

Some law firms offer a free consultation to homeowners who are fighting an insurance company.  There’s no obligation, so don’t wait to find out what a good attorney can do for you.

Injuries to Homeowner in Their Home Questions