Whenever we invite someone into our home, we risk potential liability for any injury that occurs. One of the greatest benefits of owning a luxury home is that it an excellent place to have a party and entertain guests. It is important for you to know your rights in the event that something unfortunate happens on your property.

     In many states a homeowner is liable for injuries resulting from any dangerous conditions that are known to the homeowner. This might include faulty flooring or stairs or even an improperly covered hole in the yard. In some cases you could even be liable to trespassers.

     While homeowners insurance can cover these types of claims, homeowners should obtain additional insurance in the form of an umbrella policy. The umbrella policy kicks in after the limits of your homeowners insurance have been exhausted. Even if you are renting your luxury home or have fractional ownership in a luxury home, you should purchase a renter's insurance policy and an umbrella policy for renters.