(800) 253-1482What Is Personal Liability Coverage in Tennessee?
Summary: Personal liability coverage (Coverage E) helps homeowners in Tennessee safeguard against financial losses when visitors are injured on their property or if a household member accidentally damages someone else’s property. Starting at $100,000, coverage limits can be tailored to your needs, covering medical bills, legal fees, and lost wages. However, it has multiple exclusions. How much you pay for personal liability coverage insurance depends on your lifestyle, assets, and risk factors, with higher-risk households needing more coverage and paying higher premiums. While comparing policies and using discounts can help reduce premiums, cutting coverage could result in costly out-of-pocket expenses. For extra peace of mind, umbrella insurance is also available. Estimated Read Time: 4 mins
Personal liability coverage is a crucial safeguard for Tennessee homeowners. This portion of your home insurance policy protects your finances when visitors are injured on your property or when a household member accidentally damages someone else’s property.
Also known as Coverage E, the right policy can save you from costly expenses like medical bills or legal fees.
Those financial burdens could fall directly on you without the right policy limits, making a tough situation even harder.
To avoid unpleasant surprises, ensuring you have the right level of coverage is essential.
Let’s dive deeper into how personal liability insurance coverage works and how to make sure you're properly protected.
What Personal Liability Coverage Covers in Tennessee
In Tennessee, personal liability coverage protects homeowners with coverage limits typically starting at $100,000 or 50-70% of your home policy’s dwelling coverage, but can be adjusted to suit individual needs.
Personal liability insurance coverage helps cover medical costs for visitors injured on your property due to negligence and may pay for settlements related to pain and suffering if you're found liable.
Additionally, it covers lost wages from injuries on your property, potential death benefits for accidents, and legal fees.
The coverage also extends to incidents away from home, such as damage caused at a hotel or accidental damage to your neighbor’s property.
Coverage E Exclusions for Tennessee Homeowners
Coverage E comes with plenty of exclusions, including auto-related liabilities, which must be covered by auto insurance in Tennessee, and business-related incidents that require commercial coverage.
Several additional incidents are also excluded from coverage. This includes injuries to household members, which are handled through health insurance, not home insurance.
Borrowed or rented property isn’t covered under many situations, though you may receive coverage depending on the source of the damage and your policy.
Additionally, damage caused during tasks, like damaging your neighbor's property while working or doing a favor, is also not included.
Finally, intentional harm/property damage or losses from illegal activities are excluded.
The Cost of Personal Liability Insurance Coverage in Tennessee
Personal liability coverage is included in your home insurance premium and is influenced by factors such as policy limits, home features, and claims history.
Discounts and bundles can help lower your premiums, and you can save by choosing lower policy limits, higher deductibles, or bundling your coverage.
Comparing policies from top-rated carriers is essential for reducing costs, but be cautious—reducing coverage to save money could lead to expensive out-of-pocket losses.
The average cost of personal liability settlements in Tennessee is nearly $456,000, so it's important to find adequate coverage to protect from this costly risk.
Remember, you can shop multiple carriers to save on premiums without giving up protection against potentially large financial losses.
Factors That Affect How Much You Pay
The cost of Coverage E on your homeowners policy is affected by your lifestyle and financial risk.
Policy limits and premiums are also influenced by your assets, household size, and daily activities.
If your household engages in higher-risk activities, like kids playing sports or using swimming pools, you may need more coverage.
On the other hand, if you have fewer financial assets or engage in less risky activities, you might opt for lower coverage.
Tailoring personal liability insurance coverage on homeowners insurance to meet your unique needs is the key to finding the right protection and saving money on your premiums.
Get Quotes From Tennessee Carriers to Save
Saving on Tennessee homeowners insurance can be challenging, but comparing coverage needs across multiple carriers can help you find the best protection at the lowest cost.
It’s important to review your policy for potential ways to save as well as outdated policy limits that may not fit your current lifestyle.
Remember, your personal liability coverage should be enough to keep your family from having to endure a major financial loss after the loss of another party.
Use our home insurance quote tool below to compare top-rated carriers in the Volunteer State or ask an agent how we can help you save on your coverage.
How Much Is Personal Liability Coverage Do You Need in Tennessee?
Most home insurance policies in Tennessee offer between $100,000 and $500,000 in personal liability coverage, with higher limits leading to higher premiums.
If you're comfortable with a bit more risk, opting for lower limits can help you save.
For added peace of mind, umbrella insurance—also known as personal excess liability coverage—can extend your protection beyond your standard policy.
It's a smart option to safeguard against larger, unexpected losses.
