Personal liability coverage
Pays if someone sues you for injury or property damage you're responsible for.
Full definition
Personal liability coverage protects you financially if you're held legally responsible for injuring someone or damaging their property. In homeowners or renters insurance, this covers incidents on your property (a guest slips and falls) and some off-property incidents. Standard policies include $100,000 in liability; most financial advisors recommend $300,000–$500,000, or adding an umbrella policy for broader protection.
Real-world example
A guest trips on your stairs and breaks their wrist. Medical bills and lost wages total $28,000. Your personal liability coverage pays the claim, protecting your savings.
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Pays if someone sues you for injury or property damage you're responsible for.
Related terms
- Umbrella insurance
Extra liability coverage that kicks in when your home or auto policy limits are exceeded.
- Coverage limit
The maximum amount your insurer will pay for a covered claim.
- Liability insurance
Coverage that pays for damage or injuries you cause to others.