At Clear Title, we help people make one of the biggest financial decisions in their life: purchasing a home. The closing process can be complex and challenging, so we have developed this Homebuying Horror Story Series to bring to light some of the situations that can arise during this process. In previous months we’ve covered overlooked costs, what happens if a buyer or seller wants to back out of the contract, and more. This month we are focusing on what happens if someone is injured on your property.

When you purchase a house, it’s likely that part of funding your escrow account will include adding money to cover the cost of homeowners insurance. Homeowners insurance is a great safety net to have in the event of a burglary, house fire, water damage or more. Homeowners insurance doesn’t stop there; it can cover the contents of your car if stolen, a hotel or rental if you need temporary housing or even identity theft protection.

Another important, but often overlooked, coverage included in your homeowners insurance policy is liability protection in the event of an accident on the property that you are responsible for. Let’s look at a few examples of when liability coverage may come into play.

An Unkempt Sidewalk

A neighbor is out getting some exercise, running along the sidewalk in front of your house. All of a sudden, they trip over an unlevel crack, fall down and injure their hip. Who is responsible? By most laws, you as the homeowner are responsible for maintenance and safety of the sidewalk in front of your house. Your neighbor can file a claim against your homeowners insurance for medical bills. You could be liable for tens of thousands out of pocket without insurance!

An Angry Dog

You’re opening the door to accept a package delivery, when your dog sees a squirrel outside. Bolting through your legs, their attention turns to the postal worker walking back to their truck. Before you can react, Fido has their mouth around the mailman’s arm. Who is responsible? This is another situation in which your homeowners insurance would likely kick in. In fact, some homeowners insurance covers bites that occur away from home too such as at a dog park or on a walk in a public area.

Contract Work Gone Wrong

Because your home is such a large investment, it’s likely that you will want to make updates to maintain your house over time. What happens if there is damage to your property by a shoddy contractor? Before you hire anyone to work on your house, you should verify that they are insured for any accidents on your property so you won’t be on the hook for it.

Clear Title is a title company in Pensacola, Florida, led by Board Certified Real Estate Attorney Stephen R. Moorhead. For over 30 years he has honed his skills in real estate closing and built a team of experienced, trustworthy experts to keep the horror out of homebuying. When you trust Clear Title, you’re getting hundreds of years of combined experience in your homebuying court.

To schedule a meeting with our experts and explore our Pensacola title services, contact us today at (850) 361-4029 or visit ClearTitleNWFL.com.