Coverage F: Medical Payments in Home Insurance
In a home insurance policy, you can usually select coverage between $1,000 and $5,000 for Coverage F: Medical Payments Coverage. At Young Alfred, we recommend you choose $5,000.
Medical Payments cover medical costs that occur when a guest on your property gets injured. Medical payments do not include pain and suffering, but just the hospital bills or expenses needed to care for the bodily injury when it occurs. This coverage kicks in after your guest's health insurance but could be used to cover their deductible if they have a high deductible.
Example 1: Imagine your friend Amanda visits for your summer BBQ party and slips on a banana peel, breaking her leg. She ends up in the ER with a cast and crutches. She obviously has a big hospital bill, but, like most responsible Americans, Amanda has health insurance. She has a high deductible plan, with a $5k annual deductible, so the rest will be paid by her health insurance company. If she does ask you to reimburse her for her $5,000 deductible, you can file a homeowners claim. Your $5,000 in medical payments coverage will cover the deductible but you will still need to pay your AOP deductible.
Example 2: Imagine your not-so-close friend Kristin visits for your summer BBQ party and slips on a different banana peel, breaking her arm. Kristin is not friendly. The injury costs her $50k and she does not carry health insurance. Kristin turns hostile, deciding to open a lawsuit against you. Your Coverage F does not cover the lawsuit. Your Coverage E: Personal Liability will cover the lawsuit.
Usually, your personal liability coverage in your home insurance policy is either $100,000, $300,000, or $500,000. If you have more than $500,000, it is likely through an umbrella policy - umbrella policies are very affordable, only costing $300-$500 a year for an additional $1,000,000 to $2,000,000 in coverage.
As Medical Payments Coverage is a small line item on your home insurance declarations page, it usually won't save you much money by reducing the limit from $5,000 to $1,000. We recommend you just keep the $5,000 in coverage for Medical Payments.
At your service,