Understanding insurance: Personal liability coverage

by Renee Marie Jordan 11/06/2022

Personal liability coverage is included in standard home insurance policies. This type of coverage protects you financially against claims from injuries and damage to other people or property.

To help explain how personal liability insurance works, here is a guide to the basics:

What does personal liability insurance cover?

Personal liability insurance is there to help you if you’re sued or found liable in court. The details can vary from one policy to the next, but here are some examples of situations included in most personal liability coverage:

  • Somebody is injured in your home or at another property you own.
  • Somebody is injured as a result of a traffic accident.
  • Property damage.
  • Certain lawsuits such as those for libel, slander or false arrest.
  • Paying court fees for lawsuits brought against you.

Some of these scenarios are normally covered by other types of insurance, like home and auto. However, the personal liability coverage is for anything beyond the limit of other policies. For example, if you’re liable for somebody’s medical bills after they’re injured on your property, it would be the amount over and above what that individual’s insurance could pay.

What does personal liability insurance not cover?

It’s crucial to know what might be excluded from your personal liability coverage. Some examples include:

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  • Bodily injury to you or another person living in your household.
  • Business-related accidents.
  • Workers compensation for your employees.
  • Damage to your own property.

For the above scenarios, there may be other specific types of coverage to help instead, such as business liability insurance. If you sustain injuries or property damage, your medical and homeowners insurance would be responsible.

Whether you need personal liability insurance is entirely up to you. If you’re not sure of the best choice, consult with a financial advisor to identify any possible sources of liability you might want coverage for.

About the Author
Author

Renee Marie Jordan

Renee Marie Jordan is a Third Generation Realtor®, who started out her career in residential lending. Jordan Real Estate was established by her grandmother, Jean Kotwitz, who was one of the first female real estate brokers in Solano County! The company was then passed down to her mother, Diane Jordan, over 40 years ago. Renee Marie then took over the company 24 years ago and in 2015 joined forces with RE/MAX Gold.   

Regarded as one of Northern California’s most dependable brokers, Renee Marie has gained industry respect for creating a successful brokerage company. Renee Marie’s unique blend of negotiating expertise, innovative thinking and belief that the client always comes first, has resulted in an extensive client base with many satisfied homeowners. Renee Marie specializes in residential sales, first time buyers, short sale properties, luxury properties, investment properties, foreclosures, 1031 exchanges, and has been the HUD specialist for Solano County since 2009.   

Renee Marie gets to the heart of her clients wants and needs. She attributes a great deal of her success to the many referrals she receives from clients who appreciate the care and thoughtfulness she puts into every transaction. Friends and family members can count on the same excellent service when they are referred to Renee Marie.