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:
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:
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.
It’s crucial to know what might be excluded from your personal liability coverage. Some examples include:
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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.
With over 30 years of real estate experience, Loann Tran is a trusted and award-winning REALTOR® in the Bay Area. A top producer since 1995, she’s known for her deep market knowledge, strong negotiation skills, and unwavering commitment to her clients. Loann has successfully navigated all market conditions—including the 2009 downturn—and consistently ranks among the top 10% of agents in Santa Clara County. Now with Compass, she combines her expertise with innovative tools and technology to deliver exceptional results. Clients value her integrity, attention to detail, and personal approach, making her a reliable partner for both buyers and sellers.