What Is the Difference?
These two components of your home insurance plan do different things. First, medical payments help cover the injuries that occur in your home. This is no-fault medical coverage because it does not matter who is at fault. It provides coverage to injuries people suffer when they visit you. The limit on this form of insurance is lower.
The second component is personal liability insurance. This has a higher limit because the risks are higher. It covers incidents in which you are responsible for the losses the other person suffered.
How Does No-Fault Medical Payments Insurance Work?
The best way to know which component of your policy applies is to consider what happened. No matter who is at fault, medical payments coverage makes payment of the claim from the injury. This generally applies to smaller claims. Many policies have claim limits between $1,000 and $5,000.
This type of coverage applies, then, when someone visits your home and suffers an injury. For example, a friend burns himself on the stove, requiring medical care. This person does not live there but needs medical attention. This coverage takes care of the hospital bill as long as it is within the claim limit.
What Does Liability Insurance Do?
Let’s say that person suffers a burn, but it’s severe. They need significant surgery for the tissue repair. Or, the person suffered the burn because you spilled hot water onto them near the stove. In this case, the claim amount is much higher. You may be legally responsible for the loss. When this happens personal liability insurance applies. Most policies have between $100,000 and $500,000 worth of this form of liability insurance.
Be sure to check your home insurance policy. It lists the details of all types of claims you may be able to file. Be sure you have enough coverage, too. Your agent can help you verify the amount you have.