Home Insurance 101: Understanding MedPay

Written By Charlotte Insurance on December 3, 2020. It has 0 comments.

an arm in a cast that's been covered by a homeowners insurance policy's medpay

If you ever read through your home insurance policy, and you should at least once a year or so, you may see a section labeled “Coverage F” or “Medical Payments Coverage” aka MedPay Coverage. What is this? How does it work? Why is it there?

Here’s what you need to know about MedPay.

What is MedPay Coverage?

Medical payments coverage or Coverage F covers the medical expenses of someone injured in your home or on your property who does not sue you. If you are sued for the injury, your liability coverage will pay the costs. Sometimes things happen in your home, like a neighbor or friend tripping and falling, but they don’t want to take you to court. They simply want their medical costs paid. This is where MedPay comes in.

How Much Coverage Do You Have?

Most standard home insurance policies offer MedPay coverage starting at around $1,000 per injured person. It’s one of the few coverages in your home insurance that’s not based on a percentage of the dwelling coverage. If you want more coverage than what comes standard with your policy, you can pay to increase those limits. Contact us to find out what limits are available and a free quote for an increase in your policy.

What’s Covered by MedPay?

Because so many injuries can occur in the home — from dog bites to falls and more — it’s easier to list what’s not included in medical payments coverage instead:

  • Transmission of communicable diseases
  • Physical, mental, or sexual abuse
  • Any injuries that arise from controlled substances (aka drugs and alcohol)

This doesn’t mean you can’t be found liable for these injuries, only that your MedPay coverage won’t pay the medical expenses related to those injuries even if you’re not sued.

How is MedPay Different From Bodily Injury Liability Coverage?

MedPay offers a lower amount of coverage, but it’s also meant for simpler issues. Bodily injury liability pays a claim when you’re legally responsible for the injury. That’s often determined in a lawsuit, which includes legal fees, larger claims from the injured party, and court costs. That’s also why liability policy limits are so much higher than MedPay limits. If you get sued, you’ll pay a lot more than if the injured party simply allows you to cover the medical expense without taking you to court.

It’s important to note that you only use one or the other, but never both at the same time. MedPay is for injuries that you’re not legally responsible for. Liability coverage takes care of injuries you are legally responsible for.

Want to increase your medical payments coverage for your home insurance? Have questions about your current policy? Contact us at Charlotte Insurance for a free quote and to help you understand your coverage and policy limits.

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