Personal Liability Insurance

Personal Liability Insurance

What It Is & Why It Matters

Personal liability insurance helps protect you if you’re held legally responsible for injuries or damage to someone else’s property. Maybe a guest slips on your walkway, or your child accidentally damages a neighbor’s window—without liability coverage, you could face expensive medical bills, legal fees, or even a court settlement. With the right coverage in place, you get financial protection and peace of mind.

What Personal Liability Insurance Covers

• Injuries on your property – Medical expenses if someone is hurt on your premises and you’re legally liable.

• Damage to others’ property – Coverage if you or a family member accidentally damages someone else’s possessions.

• Legal defense & court costs – Helps with attorney fees and related expenses if you’re sued due to a covered incident.

What Is Not Covered

• Car accidents – These are handled under auto liability insurance, not personal liability.

• Intentional acts – Damages or injuries you or your household members cause on purpose typically aren’t covered.

• Your own property or injuries – Personal liability doesn’t cover your own losses; those are handled under other policies like home or health insurance.

• Business-related claims – Running a business from home or renting out property often requires separate business liability coverage.

Choosing the Right Amount of Coverage

• Consider your net worth – Your liability limits should be high enough to protect your assets if you’re sued.

• Evaluate your risk level – Owning a pool, trampoline, or frequent gatherings at your home may increase your exposure.

• Know common limits – Many policies offer $100,000, $300,000, or $500,000 in coverage; choosing higher limits may provide more peace of mind.

• Think about an umbrella policy – If you want additional protection beyond your home, condo, or renters policy, an umbrella policy can extend your liability coverage.