QUESTION:
Subject: Homeowners Insurance
Hi, Kevin … A question on my Safety Insurance Homeowners insurance policy which will renew on 7/25/2026 … my coverage under Section II, E for personal liability is $300,000 … as this is only about a third of the value of my house, would it be wise for me to increase this coverage? If so, what would the added cost be?
Thanks … Bob
ANSWER:
Hi Bob,
Great question.
If you increase Personal Liability coverage from $300,000 to $500,000, the additional premium would be +$9 per year. Increasing to $1M would cost an additional $34 per year.
Personal Liability coverage protects you if you’re legally responsible for causing bodily injury to someone else or damage to another person’s property (other than automobile- or business-related claims). Examples include a guest slipping on your property, a dog bite, or an errant golf shot that injures someone or damages property.
In addition to paying covered damages, the insurance company also provides and pays for your legal defense, even if a claim ultimately has no merit. Given the relatively small additional premium, increasing the liability limit is something many homeowners find worthwhile.
Regarding your home itself, your Section I – Dwelling coverage is $527,000. This amount is different than market or assessor values and instead represents the estimated cost to rebuild your home after a covered total loss.
Your policy also includes 25% Extended Replacement Cost protection. If the dwelling limit proves insufficient the policy can provide an additional $131,750 of dwelling coverage
Please call or email to make any changes or to discuss.
Thank you,
Kevin J.
Follow Up:
Thanks, Kevin, for responding so quickly … yes, I would like to increase my personal liability coverage to $1M with the premium to increase by $34 … as the payment for the policy is due on 7/25/2026, should I pay the current premium due or add another $34?
Bob
(We forwarded a copy of his updated renewal and suggest he include +$34 and pay the premium.)