What is a Third Party Loss? And how does it affect my home insurance in Plano, Texas?

If you live in your Plano, Texas home for a while, you may eventually encounter a "Third Party Loss" situation. While Third Party Losses may be rarer than the typical claim, they deserve special attention. Inadequate insurance coverage in the face of a Third Party Loss situation can leave you vulnerable to costly lawsuits. A bit of information on these situations can help you prepare for a Third Party Loss and obtain the right type of coverage in your policy.

About Third Party Loss Situations

A Third Party Loss situation is any situation where someone besides yourself, attempts to obtain compensation from your insurance company for damages. Typically, the third party will file a lawsuit, which will then be covered by your insurance company.

If a friend or guest is injured on your property, they may file a lawsuit to cover their medical expenses. In another scenario, if a tree branch were to fall on your neighbor’s fence, your neighbor may attempt to seek compensation under your policy.

Insurance for Third Party Loss Situations

Liability insurance is especially useful for covering Third Party Loss situations. Third Party Losses are normally covered under the personal liability coverage on your insurance policy. When you have the right level of personal liability coverage, your coverage extends to cover the injuries and losses that may be caused to other people on your property.

How an Independent Agent Can Help

While personal liability coverage is likely to cover Third Party Losses, some exclusion may prevent you from receiving such coverage. As a result, you may become personally responsible for the injuries and losses incurred by your guests and neighbors. Contact us today to speak with an independent agent and ensure that your policy will protect you from lawsuits with coverage for Third Party Losses.