What Does Homeowners Liability Insurance Cover?

Personal liability is an essential factor of your homeowners, condo, and renters insurance policy. Nobody expects to be injured at home and much less to be held liable for the accident, but this is something you can’t exclude. Liability insurance will help avoid paying out-of-pocket should an accident occur inside or outside your property. Learn about personal liability coverage in our article, and how to choose the limits for your policy.

What’s Personal Liability Insurance?

Personal liability insurance is a factor of homeowners as well as renters’ policies. Liability provides coverage for damages you and people in your policy may have caused. The personal liability section will cover the legal costs in the event you need a lawyer to protect your assets when something unexpected for which you are significantly liable occurs and whether you are held liable or not.

Personal Liability Coverage

Below, some examples of how personal liability may help protect you, the various types of liability, and some expert tips.

  • Medical bills for people injured while visiting you – It can help prevent from paying out-of-pocket costs. You may have to cover the expenses if the injury was caused by your negligence such as failing to fix your stairs or broken porch, for instance.
  • Pain and suffering – This includes the medical bills, but also may help pay for a settlement against you when you are found legally responsible.
  • Lost Wages – If somebody is injured in your balcony, for example, they may not be able to go back to work, and you may be found legally liable for the wages they lost as a result.  You won’t have to pay out-of-pocket in this type of scenario.
  • Death benefits – The average home liability policy covers death benefits to the family of someone that may have passed away due to an accident at your place.
  • Coverage away from home – Liability may also cover when you are away from home. For instance, if you caused damage to a hotel lobby.


Homeowners liability insurance has its exclusions. An inflicted injury, for instance, it is not covered. If someone accidentally trips and falls, it’s covered as long as it’s unintentional.  Personal liability insurance won’t cover when you and your family are injured at home. Vehicles of your home are not covered either. Also, if you run a business outside your property, your personal liability insurance may not cover injuries caused by the accident. However, incidental business activities may be covered.  It’s important you review your policy with the help of an agent to determine coverage as well as exclusions.

Set Your Coverage Limits

Keep in mind personal liability will pay to the set dollar limit. In other words, if liability exceeds your coverage limit, you are almost certainly responsible for the remaining amount.   

  • https://www.iii.org/article/homeowners-insurance-basics

  • https://www.dfs.ny.gov/consumers/help_for_homeowners/insurance/basic_coverage

  • https://www.investopedia.com/terms/h/homeowners-insurance.asp


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