What is Personal Liability Insurance?

Personal liability insurance exists because having a home opens you up to the risk that someone could get hurt on your property, or their property could get damaged, and you could be held responsible. The right personal liability coverage can help protect you financially if something happens.

What does personal liability insurance cover?

The personal liability part of your home insurance policy pays to cover:

• Injuries to other people
• Property damage for others
• Legal fees

What if your cousin’s boyfriend slipped on your still-wet floor and fell, injuring his back? Would you be able to cover his medical bills out of pocket? If not, personal liability insurance could step in to help you cover costs.

Personal liability coverage could also help with things like your grill catching the neighbor’s fence on fire or your kid crashing their bike into a parked car.

What’s not included in homeowners liability insurance?

Personal liability insurance does not cover:

• Injuries to you or your family
• Damage to your home (from storms, fire, vandalism, etc.)
• Theft
• Damage or harm caused intentionally
• Home business issues
• Car accidents

If you have a car accident that involves your home, such as backing into the garage door, the damage would be covered under your auto liability insurance, not your home insurance.

What is the risk of not having personal liability insurance?

Without personal liability coverage, you’d need to pay for others’ injuries or damage to their things if the incident:

• Occurs on your property
• Is caused by a member of your household (including the dog)
• Is caused by your property

You could also get stuck paying a large legal bill if someone sues you for things like medical expenses, lost wages or pain and suffering.

What other types of home coverage do I need?

Personal liability insurance and hazard insurance work together to protect your home. Hazard coverage, also called dwelling coverage, is what you need to cover the home’s actual structure and your belongings. There are also optional home coverages that you can discuss with your insurance agent.

How much personal liability coverage do I need?

Lenders generally require some level of liability coverage to finance a home. For your own peace of mind, you’ll want to consider your assets, net worth and the level of risk you have to others. Think about swimming pools, trampolines, playsets, dead trees and anything on your property that could lead to injuries.

Most home and renters policies come standard with $100,000 in personal liability coverage but can be increased to $300,000 or $500,000 depending on your needs. A general rule of thumb to protect yourself financially is to include more coverage than your net worth. If your net worth is more than $500,000, you may want to look at umbrella insurance to provide an extra layer of protection.

A COUNTRY Financial rep can customize your homeowners insurance policy based on you and your home. Find a rep near you.

Updated 10-2-23