Personal liability coverage is included in standard home insurance policies. This type of coverage protects you financially against claims from injuries and damage to other people or property.
To help explain how personal liability insurance works, here is a guide to the basics:
What does personal liability insurance cover?
Personal liability insurance is there to help you if you’re sued or found liable in court. The details can vary from one policy to the next, but here are some examples of situations included in most personal liability coverage:
- Somebody is injured in your home or at another property you own.
- Somebody is injured as a result of a traffic accident.
- Property damage.
- Certain lawsuits such as those for libel, slander or false arrest.
- Paying court fees for lawsuits brought against you.
Some of these scenarios are normally covered by other types of insurance, like home and auto. However, the personal liability coverage is for anything beyond the limit of other policies. For example, if you’re liable for somebody’s medical bills after they’re injured on your property, it would be the amount over and above what that individual’s insurance could pay.
What does personal liability insurance not cover?
It’s crucial to know what might be excluded from your personal liability coverage. Some examples include:
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- Bodily injury to you or another person living in your household.
- Business-related accidents.
- Workers compensation for your employees.
- Damage to your own property.
For the above scenarios, there may be other specific types of coverage to help instead, such as business liability insurance. If you sustain injuries or property damage, your medical and homeowners insurance would be responsible.
Whether you need personal liability insurance is entirely up to you. If you’re not sure of the best choice, consult with a financial advisor to identify any possible sources of liability you might want coverage for.
About the Author
Robin Anderson Real Estate
“My Passion is people and relationships and I promise to provide my clients with exceptional service tailored to their individual needs.” -Robin Anderson
Georgia native, Robin Anderson brings her passion for people and her love of homes to work for her clients. She and her husband, Andy, have been married for over 30 years and have two adult children, Ellen and Drew. They currently live in Fulton County, but Robin has lived and invested in properties throughout metro Atlanta as well as helped clients buy and sell. She has been integral to many real estate endeavors including designing and building several custom homes, remodeling homes, subdividing land, managing rental properties, and buying and selling properties. She spent her first 3 years in real estate working with a new home builder, and she has spent the last 6 years working with buyers and sellers in her own community. Robin is highly motivated but sensitive to the fact that buying and selling homes can be an emotional experience, so she makes it a priority to keep clients closely informed throughout the process and strives to produce quick results. She appreciates the opportunity to help her clients navigate the real estate process, and she aspires to deliver quality customer service that is both informative and positive. She is driven to provide outstanding service for her clients and she is focused on building successful and lasting relationships with her clients. This personalized service earns her enthusiastic referrals from clients she is pleased to call friends.Edit
