What is Personal Liability Insurance?
Personal liability insurance is about financial protection – for you and your family. The personal liability coverage within your homeowners policy provides coverage to pay for claims of bodily injury and property damage sustained by others for which you or covered residents of your household are legally responsible.
For example, if someone falls down your stairs, or your child accidentally throws a ball through a neighbor's window, breaking an expensive vase, you may be held legally responsible for the damages caused.
Many homeowners insurance policies provide a minimum of $100,000 in personal liability coverage, meaning the insurance company can pay up to that amount in total to injured persons per occurrence. If you feel you need more protection, higher limits are available. You can also purchase an umbrella policy which enables you to extend your liability coverage beyond the limits of your primary liability policy.
If you don’t currently have personal liability coverage, contact Travelers Insurance or get a home insurance quote today.
What Does Personal Liability Insurance Cover?
Personal liability insurance covers a variety of situations where you may be legally responsible to pay for something that happened to someone else on property that you own or, in some situations, on property that you don’t own. Some examples of common personal liability claims are:
- Medical bills that result from a visitor’s injury at your home
- Legal expenses resulting from lawsuits that seek to recover damages that are potentially covered by the policy
- Bodily injury or property damage that results from your negligent acts or omissions
- Bodily injury or property damage caused by your pets
Medical Payments
Another type of personal liability coverage typically included with your homeowners policy is for medical payments to others. Typically, a homeowners, renters or condo policy provides for the payment of necessary medical expenses for persons who are accidentally injured on your property. This is regardless of whether you are legally responsible.
Typically, medical payments coverage limits start at $1,000 per person. Higher amounts of coverage may also be available depending on the type of coverage you choose.
What is Not Covered by Personal Liability Insurance?
Your homeowners or renters insurance will cover certain personal liability claims, but there are other claims that may not be covered. A few common examples include:
- Liability that results from a car accident. These claims should be covered by your car insurance.
- Bodily injury or property damage caused intentionally by you or a family member.
- Injuries or damages sustained by you or other covered residents in your home.
- Bodily injury or property damage arising out of any business conducted by you or arising out of your professional activities. Claims that arise while you are engaging in any business-related activities should be covered by a business insurance policy.
Other Liability Coverage Exclusions
A homeowners, renters or condo policy does not cover all situations of bodily injury or property damage for which you or a covered member of your household may be legally responsible. Most policies contain exclusions and exceptions, so it’s important to understand the details of your specific coverage.
To better understand your personal liability coverage and other important insurance topics, talk to your local independent agent or Travelers Insurance representative today.
Personal liability occurs in the event an accident, in or out of your home, that results in bodily injury or property damage that you are held legally responsible for. Personal liability claims could include medical bills, legal fees and more if a guest is injured on your property, as well as coverage for accidental damage you are legally responsible for on someone else’s property. If you have personal liability coverage, you may be able to avoid paying out of pocket for incidents like these, up to your coverage limits. That’s why personal liability coverage is an important component of your homeowners insurance or renters insurance policy.
Now that you know the definition of personal liability insurance, here's a real life example: let's say 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 – which can be thousands of dollars. This is where personal liability insurance can kick in. Personal liability will cover the costs of medical bills, as well as your legal defense fees, up to the limit of your liability coverage. However, personal liability coverage may also be able to cover an incident that occurs outside your home or property.
What does personal liability insurance cover?
Under your basic homeowners insurance or renters insurance policy, personal liability coverage may protect you under the following circumstances, up to your policy limits:
- Lawsuits you may face if an accident occurs
- Bodily injury to an individual
- Property damage that occurs as a result of your negligence
If the liability limits of your policy don’t meet your needs, you may want to consider additional coverage such as personal umbrella liability insurance, which provides an extra layer of personal liability protection. This will help to cover costs if there's a serious auto accident or accident on your property that exceed the limits of your liability coverage.
What isn’t covered by personal liability insurance?
While your standard home or renters insurance will cover certain personal liability claims, there are other claims that may not be covered, such as:
- Liability resulting from an automobile accident [this will typically be covered by your auto insurance]
- Bodily injury or property damage caused intentionally by you or a family member in your home
- Injuries or damages sustained by you or family members in your home
- Business activities or claims related to your profession
Be sure to carefully review your home or renters policy so that you have a solid understanding of what is and isn’t covered by personal liability insurance. If you don’t currently have personal liability coverage for your home, contact a Nationwide agent or get a home insurance quote today. Choose the personal liability policy limit that’s right for you and start getting the coverage you need.
Related topics & resources
Product, coverage, discounts, insurance terms, definitions, and other descriptions are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in your individual insurance contracts, policies, and/or declaration pages from Nationwide-affiliated underwriting companies, which are controlling. Such products, coverages, terms, and discounts may vary by state and exclusions may apply.