What is personal liability?

Personal liability is a part of basic civil law (as opposed to criminal law) and deals with disputes between individuals. The most common examples of personal liability are when one individual’s actions cause bodily injury to another individual, such as when your dog bites someone or a guest falls on your property.

In the context of your homeowners insurance, personal liability is a coverage provided within the policy. The personal liability insurance will protect you in the event someone claims caused injury or property damage. This personal liability can happen on your insured property or it can also happen away from your home and it is still covered . The policy will contain exclusions for liability arising out certain activities, such as business or intentionally caused injury or damage. Also, liability related to car accidents or other automobile-related incidents will be covered by auto insurance and not your homeowners policy.

In many situations when you are sued, the cost of the legal defense is greater than the damages to settle the claim. The personal liability coverage on your homeowners policy will provide for an attorney to represent and defend you, in addition to actually paying to settle the claim on your behalf. Many homeowners overlook the valuable benefit of legal defense as a component of home insurance.

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