someone who's not a member of government) against another private person. The jury awarded $11,000,000 in punitive damages. ... Benefits of Insurance Coverage in Case of a Lawsuit. HOMEOWNERS' insurance is probably not the first thing you think of when the talk turns to civil lawsuits. ... Guard from a lawsuit against your HOA. Umbrella Insurance… ... E.S. Again, each state has its own statutes and case law regulating the insurance industry, and these include the types of lawsuits you can bring against an insurer. A secondary benefit of having a homeowners’ policy in place is that the insurance company will typically appoint—and pay for—an attorney to deal with any lawsuit … ... you may have to file a lawsuit to recover compensation. ... the insured's homeowners policy would generally cover the claim and provide a defense. Gun owners seek out self-defense insurance. If the assault happens outside of a professional situation, there may still be opportunities for compensation. The key to making a decision about whether to purchase an umbrella policy is understanding what's covered by umbrella insurance and, equally importantly, what isn't. Umbrella insurance is a form of liability insurance that will supplement your basic liability policies, such as your auto, home or renters insurance. Home Insurance Company denied coverage for a $10 million earthquake claim, and a California jury concluded the denial, based on a policy exclusion, was in bad faith. Home Insurance Company denied coverage for a $10 million earthquake claim, and a California jury concluded the denial, based on a policy exclusion, was in bad faith. If your homeowner’s insurance covers the action, you may be in luck, because there are a number of potential benefits. If you are injured in a slip and fall at a neighbor's house, will the property owner’s homeowner’s insurance kick in to cover any claim you make? Your homeowner's insurance includes $50,000 in liability coverage. Insurance Coverage Usually Includes Legal Defense. All insurance policies are different, so read the fine print or contact your insurance agent to find out exactly what your policy covers. Keep overzealous crime watchers from inviting costly lawsuits on your homeowners association. Learn more about how your homeowners insurance may be able to financially protect your civil liability in the event of a lawsuit. If the victim is awarded $10,000 and the suit is settled with legal fees and costs amounting to less than $40,000, then yes, your homeowner's insurance does a good job of covering this example civil lawsuit. While home insurance policies typically cover damage from fire, certain natural disasters, or damage caused by others, they also can prevent costly lawsuits due to the various liabilities that homeowners assume. Homeowners insurance provides coverage for incidents causing damage to the insured's home. In situations where you are facing a lawsuit, which can happen to anyone, having personal umbrella insurance can be very valuable. While home insurance policies typically cover damage from fire, certain natural disasters, or damage caused by others, they also can prevent costly lawsuits due to the various liabilities that homeowners assume.