Personal Liability Insurance: What Is It and Why Is it So Important?

Personal Liability Insurance: What Is It and Why Is it So Important?

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Personal liability insurance coverage is among the most important parts of any homeowner’s or renter’s insurance policy. If you are ever liable for damages because of property damage or personal injury, your liability insurance coverage provides protection.

In this article, we examine some of the basic aspects of liability coverage, including what it is, what it does and does not cover, and some of the consequences of not having adequate coverage on your policy.

Here are a few things you should know.

What Is Personal Liability Insurance?

Personal liability coverage is included in homeowner’s and renter’s insurance policies to protect the owner of the policy. Without this coverage, their personal assets could be at risk if they are ever sued.

This type of coverage also pays for the cost of defending against any lawsuit brought against the liable party.

Personal liability insurance covers a few different types of damages: bodily injury and property damage.

Bodily injury covers medical expenses when someone is injured on your property. Examples include the following:

  • Hospital costs
  • Ambulance costs
  • Medical and surgical procedures
  • X-ray services
  • Dental costs
  • Funeral costs

The policy covers costs when a lawsuit is brought against the policy owner due to the injury.

Property damage coverage pays for any damages that the policy owner (or others covered under the policy) is responsible for causing. This type of coverage can pay for many different scenarios, but let’s look at an example.

Let’s say the policy owner’s child accidentally throws a baseball through the neighbor’s window. Not only would the personal liability insurance cover the broken window, it would also cover anything that the ball damaged inside the neighbor’s home. So, if the baseball knocks over an expensive lamp or damages a TV, the policy should cover the costs.

It should be noted that both bodily injury and property damage coverage are subject to policy limits.

What Is Covered (and What Is Not)?

Personal liability insurance covers a wide range of situations. Here are a few of the more common ones that a policy might cover:

  • Slip and fall accidents
  • Dog bites
  • Libel and slander
  • Food poisoning
  • Some accidents outside the home

While there are many more incidents that may be covered under a policy, it is important to talk to an attorney if you are denied coverage.

Personal liability coverage does not cover any intentional acts, so any harm those covered under the policy cause could put personal assets at risk.

Need to Seek Damages Against Another Party’s Personal Liability Insurance?

If you have been injured or incurred property damage because of someone else’s negligence, you need to make sure your rights are protected. Don’t wait another second to get the compensation you are owed, even if the person responsible is someone you are close to. They have personal liability insurance for a reason—their personal assets should be protected.

Get in touch with the attorneys at RRBH Law today to set up a consultation.