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The liability part of your homeowners insurance helps protect you financially from lawsuits for bodily injury or property damage that you or family members cause to other people. For covered losses, the liability portion of your homeowners policy pays for both the cost of defending you in court and any court awards. It will also likely include no-fault medical coverage, so if a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company.
Review your homeowners policy to make sure you carry responsible limits of liability. If you need higher limits, consider a liability umbrella policy.
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