Personal Liability Insurance
Included in both homeowner's and renter's insurance, personal liability is meant to protect a policyholder in the event of an accident in or outside of a home that causes bodily injury or property damage that they are held legally responsible for. These claims encompass medical bills, legal fees of the injured person, as well as coverage for accidental damage the policyholder causes on someone else's property. With personal liability, you can avoid paying out of pocket up to your coverage limits.
Personal liability will cover lawsuits against you in the event of an accident, bodily injury to an individual and property damage that occurs due to negligence. Claims that are not covered include liability from a car accident which is normally covered by auto insurance, intentional bodily injury or property damage by you or a family member in your residence. Business claims related to your profession are also not included.
Additional coverage is available under personal umbrella liability insurance, which offers an extra layer of protection if an accident exceeds the limits of your liability coverage.