Notify your homeowners insurance company of the incident right away. The insurer will assign a claim adjuster to verify coverage and compete a detailed investigation. The adjuster will discuss the accident with you and your neighbor. He/She will also evaluate fall-related medical bills before settling the claim. Medical payments does not cover time off work, pain and suffering, etc.

Homeowners policies also provide personal liability protection with limits of $100,000 or more, but this coverage hinges on negligence. Negligence means the other person's injuries happened because of unreasonable or unsafe conditions created by an insured individual. Liability protects you, family members that live with you and even your pets. It also pays for a legal defense if needed.

Homeowners liability and medical payments coverage protect the policyholder's financial assets. Assess your net worth and then ask a local agent about the extra cost to increase limits if appropriate.