What is Personal Liability Coverage?
A vital component of your homeowner’s insurance or renter’s insurance policy is personal liability coverage. Personal liability coverage will provide coverage in the event an accident happens in or out of your home that results in bodily injury or property damage that you’re held legally responsible for. If you’ve got personal liability coverage, you will be ready to avoid paying out of pocket for incidents like these.
For example, a guest visits your home and while walking through your garage is hit by a falling ladder. The guest suffers a broken arm and sues you for damages – that will be thousands of bucks. This is where personal liability coverage will kick in. Personal responsibility can cover the prices of medical bills, with your legal defense fees, up to the limit of your liability coverage. However, personal liability coverage might conjointly be able to cover a happening that occurs outside your home or property.
What Does Personal Liability Coverage Cowl?
Below your basic homeowner’s insurance or renter’s insurance policy, personal liability coverage might protect you beneath the following circumstances, up to your policy limits:
- Lawsuits you may face if an accident occurs
- Bodily injury to an individual
- Property damage that happens as a result of your negligence
If the liability limits of your policy don’t meet your wants, you will want to think about additional coverage like personal umbrella liability insurance, which provides an extra layer of special liability protection. This can help to hide prices if there’s a severe auto accident or accident on your property that exceeds the boundaries of your liability coverage.
What Isn’t Coated by Personal Liability Coverage?
Whereas your standard home or renter’s insurance can cover certain personal responsibility claims, there are more claims which will not be linked, such as:
- Liability ensuing from an automobile accident (your auto insurance will sometimes line this)
- Bodily injury or property damage caused intentionally by you or a friend in your home
- Injuries or damages sustained by you or family members in your home
- Business activities or claims related to your profession
Be certain to carefully review your home or renter’s policy thus that you have a solid understanding of what’s and isn’t coated by personal liability coverage. If you do not currently have personal liability coverage for your home, get a home insurance quote today, and select the policy limit that is right for you.