MEDICAL PAYMENTS COVERAGE ON HOMEOWNERS INSURANCE POLICIES
April 21, 2010 @ 11:23 AM — by SEO Admin
Homeowners insurance policies have several different types of coverages. Liability coverage protects the homeowner from claims for personal injuries or other damages that are caused by the homeowner's negligence. In Florida, the liability limit for a homeowner is typically a minimum of $100,000 while some policies provide limits of more than 1 million dollars. Medical payments coverages, on the other hand, have much lower limits typically ranging from $1,000 to $20,000. The huge disparity in dollar limit amount is only one of the significant differences between liability coverage and medical payments coverage. The other difference is that the homeowner does not have to be negligent in order for the medical payments coverage to pay an injured person's medical bills.
There is a misunderstanding by some that the insurance company for the homeowner where an injury occurred is always responsible for damages to the injured person. That simply is not true. The homeowner has to have done something wrong and be at fault in order to be liable for damages. The misunderstanding stems from the fact that medical payments coverage will in fact pay without regard to fault. Of course, medical payments coverage will only pay for a limited dollar amount of medical expenses. The rationale behind medical payments coverage is that if injured persons get their medical bills paid, then they are less likely to bring a larger liability claim.
Medical payments coverage is an optional kind of coverage and is not included in all policies. In fact, policy language must be carefully analyzed to determine the existence and applicability of medical payments coverage. Most policies provide that medical payments coverage is not available to the named insured (which includes resident-relatives of the named insured). There may also be an exclusion for any injury that was intended or expected by the named insured or the resident-relatives of the named insured.
Insurance companies sometimes include a limitation on coverage that provides that only people that are on the property with permission are elgible for medical payments coverage. This is an area where the law has been consumer friendly in that permission may be implied. There are also contractual time periods to make a medical payment coverage claim. The policy may say that any claim must be made within 3 years- and some policies even say 1 year. This time limitation has been held unenforceable by the 4th District Court of Appeal in State Farm v. Swearingen. But it is important to note that Swearingen was a case about medical payments on auto insurance. In that case, the court relied on the PIP statute to hold the time limitation unenforceable. Medical payments coverage on a homeowner's policy does not involve the same statute, so Swearingen may not help avoid the time limitation on a homeowner's claim.
In summary, be aware of:
1)whether the policy includes medical payments coverage;
2)whether you are elgible for the coverage;
3)any time limitation, so the claim gets timely processed and the coverage is not wasted.
There is a misunderstanding by some that the insurance company for the homeowner where an injury occurred is always responsible for damages to the injured person. That simply is not true. The homeowner has to have done something wrong and be at fault in order to be liable for damages. The misunderstanding stems from the fact that medical payments coverage will in fact pay without regard to fault. Of course, medical payments coverage will only pay for a limited dollar amount of medical expenses. The rationale behind medical payments coverage is that if injured persons get their medical bills paid, then they are less likely to bring a larger liability claim.
Medical payments coverage is an optional kind of coverage and is not included in all policies. In fact, policy language must be carefully analyzed to determine the existence and applicability of medical payments coverage. Most policies provide that medical payments coverage is not available to the named insured (which includes resident-relatives of the named insured). There may also be an exclusion for any injury that was intended or expected by the named insured or the resident-relatives of the named insured.
Insurance companies sometimes include a limitation on coverage that provides that only people that are on the property with permission are elgible for medical payments coverage. This is an area where the law has been consumer friendly in that permission may be implied. There are also contractual time periods to make a medical payment coverage claim. The policy may say that any claim must be made within 3 years- and some policies even say 1 year. This time limitation has been held unenforceable by the 4th District Court of Appeal in State Farm v. Swearingen. But it is important to note that Swearingen was a case about medical payments on auto insurance. In that case, the court relied on the PIP statute to hold the time limitation unenforceable. Medical payments coverage on a homeowner's policy does not involve the same statute, so Swearingen may not help avoid the time limitation on a homeowner's claim.
In summary, be aware of:
1)whether the policy includes medical payments coverage;
2)whether you are elgible for the coverage;
3)any time limitation, so the claim gets timely processed and the coverage is not wasted.