Personal Liability Coverage Insurance

Personal liability coverage insurance, which is also called as personal liability coverage, is a type of insurance that provides protection against claims of bodily injury or property damage caused by the policyholder’s negligence.

In essence, personal liability coverage helps protect an individual’s assets and financial well-being in the event that they are found legally responsible for injuring someone else or damaging their property.

What Personal Liability Coverage Insurance Covers

Here are some of the most important aspects that the personal liability coverage handles.

  1. Bodily Injury Liability

This covers claims made against the policyholder for injuries sustained by others due to the policyholder’s negligence. This could include medical expenses, lost wages, pain and suffering, and other damages awarded to the injured party.

  1. Property Damage Liability

This covers claims made against the policyholder for damage caused to someone else’s property, such as their home, vehicle, or personal belongings, due to the policyholder’s negligence.

  1. Legal Defense

Personal liability insurance typically covers the costs of legal defense, including attorney fees and court costs, if the policyholder is sued for a covered claim.

  1. Settlements and Judgments

If the policyholder is found legally liable, the insurance policy will cover the costs of settlements or judgments awarded, up to the policy limit.

Personal liability coverage is often included as part of a homeowner’s insurance policy but may also be available as a separate policy or an add-on to renters or condo insurance. The liability coverage can provide protection for incidents that occur both on and off the insured premises.

Some common scenarios where personal liability insurance may provide coverage include:

  • A guest slips and falls in your home due to your negligence.
  • Your child accidentally causes damage to a neighbor’s property while playing.You accidentally injure someone while playing sports or engaging in recreational activities.
  • Your pet bites or injures someone else.

Types of Personal Liability Coverage Insurance

Personal liability insurance coverage typically comes in a few different forms:

  1. Homeowners Liability Coverage

This is the most common type of personal liability insurance. It’s included as part of a standard homeowners insurance policy. Homeowners’ liability coverage protects you against claims of bodily injury or property damage that occur on your property or are caused by members of your household.

  1. Umbrella Liability Coverage

An umbrella liability policy provides additional liability coverage above and beyond the limits of your homeowners, auto, or other underlying liability policies. It kicks in when you exceed the liability limits on your other policies, protecting your assets further.

  1. Renters Liability Coverage

For those who rent a home or apartment, renters liability covers claims of injury or property damage to others caused by your negligence as a tenant. It may also cover injuries or damage you cause away from your rented residence.

  1. Condo Liability Coverage

Similar to renters’ liability but for condo owners, this protects against injury and property damage claims within the condo unit itself as well as your potential liability for common areas of the building.

  1. Personal Liability Insurance Policy

This is a standalone liability policy you can purchase separately from any other insurance. It protects you from personal liability claims related to bodily injury, property damage, slander, libel and more.

  1. Excess Liability Insurance

This provides extended liability limits above standard auto or homeowners policies for higher net worth individuals who want broader asset protection against liability claims.

Some additional specialized liability coverages include employer’s liability for injuries to household staff, and watercraft liability insurance for boat owners. The right liability coverage depends on your specific risks and exposures as an individual or household.

Companies that Offer Personal Liability Coverage Insurance

  1. Allstate

Allstate includes personal liability in their homeowners, renters, and condo insurance packages. They also have options for umbrella liability coverage and stand-alone personal liability policies.

  1. Nationwide

Nationwide’s homeowners and renters insurance automatically includes personal liability protection. They have additional personal umbrella liability insurance available.

  1. Farmers Insurance

Farmers includes personal liability protection in their homeowners, renters, and condo insurance policies. Additional personal umbrella insurance can increase liability limits.

  1. USAA

For military members and families, USAA provides personal liability coverage bundled with their homeowners and renters insurance offerings.

  1. The Hartford

The Hartford has personal liability coverage built into their homeowners policies, plus the option to add an umbrella liability policy.


Without personal liability coverage insurance, the policyholder would be responsible for paying any damages or legal expenses out of their own pocket, which could potentially lead to financial hardship or even bankruptcy in severe cases.

Many regional and local insurance companies also include personal liability as part of their standard homeowners and renters insurance packages. Working with an independent agent can help compare options across different carriers.

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