Personal Liability Insurance

What Does Personal Liability Insurance Mean?

Personal liability insurance provides coverage for liabilities that individuals, rather than organizations, may be held responsible for.

Many homeowners and auto insurance policies include a certain amount of personal liability coverage. However, personal liability insurance can also be purchased as a stand-alone policy. Coverage limits on the personal liability portion of a homeowners policy vary widely between insurers, and most of the best homeowners insurance companies offer at least $100,000 by default, with options to go higher. On the auto side, the bodily injury and property damage liability portions of your policy handle this same type of risk while you’re driving, and choosing the right limit depends on the factors covered in how much liability insurance you need, including your personal assets and your state’s minimum requirements.

Insuranceopedia Explains Personal Liability Insurance

There are various types of liabilities for which a person can be held accountable. For instance, if someone is injured due to a slip and fall on your property, or if your child breaks a neighbor’s window with a baseball, you could be held liable for both incidents.

Injuries can be costly to reimburse due to high medical expenses, lost wages, and pain and suffering. However, personal liability insurance can help mitigate the financial burden of such reimbursements.