What does a personal liability policy cover?

Personal liability insurance is all about financial protection, for you and your family. Personal liability coverage under your homeowner's policy provides coverage to pay for claims for bodily injury and property damage suffered by third parties for which you or the covered residents of your home are legally responsible. Personal liability insurance covers you if you are sued for hurting another person or damaging your property. When you buy homeowners insurance for hazard coverage, you're likely to get personal liability coverage as well.

In other words, a general policy and personal excess liability insurance take effect after you exhaust homeowner coverage limits. While renters generally don't need as much liability coverage as homeowners, this is still a good safety net for any tenant with valuable assets. If your homeowner's insurance liability coverage runs out during a claim, your personal supplemental policy goes into effect to cover the remaining costs. Below are some situations that are generally not covered by personal liability insurance, along with tips on what other insurance might offer coverage.

Personal liability insurance, also known as comprehensive personal liability insurance (CPL), is a component of homeowners insurance or general insurance policy that protects you and your household members from claims arising from injury and damage to other people or their property. Choose the personal liability policy limit that's right for you and start getting the coverage you need. Personal liability insurance covers damage you do to other people or their belongings, not your own injuries or damage to your belongings. Keep in mind that a personal supplemental policy offers supplemental coverage, which means it goes into effect after you exhaust your homeowner's or car insurance policy.

Without personal liability insurance, you would have to pay out-of-pocket expenses, if you are determined to be legally liable. That said, you shouldn't receive a drastic increase in rates by increasing your personal liability coverage limits. Personal liability insurance covers you if you cause bodily injury to another person or damage their property. The personal liability portion of your homeowner's insurance provides coverage for personal injury and property damage.

This will help cover costs if there is a serious car accident or an accident on your property that exceeds the limits of your liability coverage. If someone is injured and found responsible and they don't have personal liability coverage, they would be legally responsible for covering the settlement completely out of their own pocket.

Sherrie Kroner
Sherrie Kroner

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