What is liability insurance?
Liability insurance, also known as personal liability insurance or third-party insurance, may help offset the costs of court awards and pay for a defense in the event that you (or covered residents of your household) are found legally responsible for injuries to someone else or damage to someone else’s property.
What does liability insurance cover?
A few examples of when you may need personal liability coverage are if the following happens and you are found negligent:
- Your child hits a baseball through your neighbor’s window and breaks expensive home decor
- A houseguest falls down your stairs and breaks a leg
- A ladder you left outside falls onto your friend
- Your mother-in-law falls through your gazebo
How much personal liability insurance do I need?
The amount you need largely depends on your situation. For instance:
- Do you entertain and invite neighbors and friends over often?
- Do your children often have friends over?
- Do you keep a lot of firearms on your property?
These are all scenarios where you may want to have personal liability coverage. Maximum amounts are specified in your policy.
Ever wondered about the difference between liability and negligence? Get details on liability and negligence now with this Learning Center article.