Personal Liability Coverage - Home Insurance

What is Personal Liability Coverage?

<lingo>Personal liability coverage is an insurance policy that protects the policyholder from financial loss associated with claims made against them. It covers claims of bodily injury as well as property damage. It applies in situations in which you are considered legally responsible for the losses the other party suffered. 
This includes the medical bills, lost time at work, and even pain and suffering another person suffered due to your actions or inactions. This type of insurance is a component of most comprehensive home insurance policies, though consumers can purchase higher values if they elect to do so.</lingo>

Personal Liability Coverage Clearly and Briefly Explained

Most home insurance policies have personal liability coverage as a component of them. This type of insurance doesn’t protect you from damage to your home, but rather from claims made against you. It helps protect you both at your home and away from it. The coverage usually applies when some type of accident occurs on your property in which a person suffers an injury. It is then determined that you are legally responsible for that person’s losses.
 

Personal liability coverage does more than just pay claims made against you, though. It also can help to provide you with legal defense if you are sued in a court of law over a claim like this. That includes paying for judgments awarded by a judge or those settlements that occur outside of a courtroom. There is a limit to how much these costs can be, dependent on the amount of insurance you purchase.

<twitter>Personal liability coverage is an insurance policy that protects the policyholder from financial loss associated with claims made against them. It covers claims of bodily injury as well as property damage.</twitter>

This insurance covers bodily injury to another person not living in your home, property damage that happens as a result of your negligent actions, and lawsuits resulting after such an accident. However, it does not cover any liability claims from vehicle accidents, any claims in which you acted intentionally to hurt the other party or instances related to business activities completed in your home. Also, it doesn’t apply to anyone making a claim that is living in your home. The policy can be extended if you are at a higher risk for such claims.

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