What is personal liability insurance coverage?

What is personal liability coverage?

Personal liability coverage protects you from the financial repercussions of your actions – or inaction. It covers the cost of injuries or damage for which you are responsible.

A claim can be made against your homeowners liability coverage for the cost of medical bills after an injury or for someone else’s property that is damaged due to something you did or failed to do that could have prevented it. It covers you everywhere, not just at home.

"Most insurance carriers provide coverage with worldwide protection in case a claim or lawsuit is brought against you because of accidental bodily injury or property damage, " Scott Hammersand, a personal lines risk advisor with Overmeyer Hall Associates, an insurance broker in Ohio, says.

For liability insurance to apply, you have to be at fault for the injury or damage. It will also cover you if you’re at fault vicariously, such as when a dog bites someone or a child breaks something.

Check how personal liability coverage limits affect your home insurance rates with our home insurance calculator.

Home insurance calculator by ZIP code

Average home insurance rates in Texas

Most & least expensive ZIP codes for homeowners insurance in Texas

Most expensive
Least expensive

ZIP code	City	Highest rate
77550	Galveston	$10,164
77586	El Lago	$9,906
77551	Galveston	$9,536
77554	Galveston	$9,358

ZIP code	City	Lowest rate
78559	Iglesia Antigua	$1,956
78593	Santa Rosa	$1,999
79915	El Paso	$2,008
79905	El Paso	$2,009

Read our methodology

What does personal liability insurance cover?

Personal liability insurance covers:

Injuries to another person, either on your property or anywhere, if you or a family member living with you are at fault.
Injuries caused by a covered family pet.
Damage to the property of others, either on your property or anywhere, if you or a family member are at fault.
Costs to defend a lawsuit against you, regardless of whether or not you are at fault.

As mentioned above, liability covers not only you but also your family. If your child is playing baseball and breaks a neighbor’s window, it’s covered. Liability also covers injuries done by a pet, with some exceptions. Home insurance policies usually exclude many exotic pets and may also exclude some dog breeds.

What doesn’t personal liability insurance cover?

These are the common exclusions of liability coverage:

Intentional injuries or damage.
Injuries to you or members of your household.
Damage to property belonging to you or members of your household.
Business pursuits either on or off the premises.

Liability coverage only applies to other people. "Accidently damaging your own property or injuring yourself or family would not be covered," Hammersand says.

Remember that liability insurance doesn’t cover anything where you are not at fault. A person making a claim against you will need to show that you were negligent and caused the injury or damage.

How much personal liability coverage do I need?

You need enough liability coverage to protect all of your assets from a lawsuit. The standard personal liability coverage limit on a homeowners policy is $100,000, but experts recommend raising it to at least $300,000. You might need more coverage if you have a lot of assets to protect or out-of-the-ordinary risks.

"The average person should have at least $500,000 of personal liability on their home, condo, or renters policy. It’s relatively inexpensive to raise this limit from the standard $100,000," Hammersand says.

If you need more coverage than a home insurance policy can provide, consider an umbrella insurance policy. This type of policy will cover you above and beyond the limits of your home insurance and starts at $1 million.

"Many lawsuit awards result in the garnishment of future earnings as punishment for prior negligence. That means you could be paying for an accident you are considered responsible for over years of income in the future. The only way to protect yourself is to buy enough insurance to ascertain such risk is minimal, if not almost impossible," Martin says.

How much is personal liability insurance?

Personal liability coverage is not priced separately from the rest of your home insurance. However, increasing your liability from $100,000 to $300,000 costs around $14-16 a year extra, on average, based on Insurance.com’s national average rate data.

FAQ: Personal liability insurance

How does homeowners insurance work if someone gets hurt on your property?

There are two ways homeowners insurance can cover injuries to someone on your property. Regardless of fault, your medical payments coverage will cover medical bills for a minor injury. If the injury is more severe, and your negligence caused it, your liability insurance will cover medical bills and any resulting legal procedures.