Insurance can be confusing, but it doesn’t have to be.
Learn more about Coverage F and why it’s an important part of your home insurance.
People sometimes talk about home insurance as if it were a single type of coverage, but there are actually multiple types of coverage that make up your home insurance policy.
- Coverage A: Dwelling
- Coverage B: Other Structures
- Coverage C: Personal Property
- Coverage D: Loss of Use
- Coverage E: Personal Liability
- Coverage F: Medical Payments to Others
While most of these are pretty self-explanatory, the last two tend to cause some confusion. Aren’t med pay and personal liability the same thing?
Yes, there is a bit of overlap but these are actually very different forms of coverage.
What Is Coverage F?
Medical Payments to Others—known as MedPay—is designed to cover the costs of medical treatment if a third-party (i.e. someone who does not live in your home) injures themselves on your property.
With MedPay coverage, there is no question regarding whether or not you can be held liable for the accident. Your visitor’s medical bills will be reimbursed regardless of who was at-fault. So if your friend breaks his wrist falling down your stairs, the resulting medical treatment will be covered (up to your coverage limit).
In addition to things like casts and stitches, MedPay also covers things like:
- Ambulance rides
- Hospital bills
Medical payments coverage is a great way for your guests and visitors to get the treatment they need without having to resort to a lawsuit.
So…What Is Coverage E?
Some types of injuries, however, do escalate to a lawsuit. That’s where personal liability coverage comes in.
While Coverage E does also cover medical treatments for third-parties injured on your property, it also protects you from financial repercussions if you were found to have been at-fault for the accident.
In addition to the injured party’s medical bills, personal liability coverage also covers:
- Property damage caused to a guest’s belongings on your property;
- Legal costs you incurred as a result of the accident;
- Pain and suffering of the injured person; and
- Lost wages the injured party experiences as a result of the accident.
As you can imagine, personal liability has a much higher coverage limit than MedPay—typically between $100,000 and $1 million.
Do You Have Enough Coverage?
The good news is that you don’t have to decide whether to pay an additional premium for MedPay or personal liability coverage. Both are included in a standard homeowner’s policy!
One question you do need to ask yourself, however, is whether your coverage limit is sufficient.
Unfortunately, you can never predict whether a medical pay claim will escalate to a liability claim. Serious accidents can happen at any time and without warning (that’s what makes them accidents).
“But my friends and family would never sue me!”
Even if that were true, consider how quickly medical costs can add up. After an ambulance ride to the hospital, an overnight stay, and surgery, $5,000 in MedPay coverage is a drop in the bucket.
Besides, it isn’t just invited guests you have to worry about. If you have an “attractive nuisance” (such as a pool, playground, or trampoline), you can also be held liable if a child wanders onto your property and gets hurt as a result.
Coverage For All Your Needs
Coverage F is an important part of any homeowner’s policy, but basic home insurance is not enough.
To adequately protect yourself against the myriad of risks that threaten you, you need to build a network of insurance coverage. And covering all the bases is only possible with an experienced independent insurance agent.
At Harry Levine Insurance, we specialize in matching our clients with the policies that match their goals, risk tolerance, and budget. Whether you own or rent, drive a car or take the bus, own your own business or not, we can connect you with the coverage you need to protect your family, your wallet, and your belongings.