What is liability coverage?

If you cause an accident or someone is injured on your property, you could be found legally liable for resulting expenses, such as medical or legal bills. Liability coverage can provide you with protection from liabilityinsuranceagency.com these types of expenses, which is why it’s a good idea to understand the liability coverage your insurance policies provide and what limits apply. Having the proper safeguards in place may help protect you if the unexpected occurs.

Personal liability coverage is a typical component of home, renters and condo insurance. But, other types of insurance policies may also provide liability coverage. Here’s an introduction to the types of liability coverage typically offered in different kinds of insurance policies:

Liability insurance is a standard component of most auto insurance policies and is a required coverage in most states. Auto liability insurance can help provide protection in two ways. If you cause an accident that injures another person, auto bodily injury liability coverage may help pay for their medical bills. Auto property damage liability coverage also helps pay for repairs to another person’s property if you damage it with your car.

Homeowners liability coverage provides financial protection if you’re found liable after a guest is injured at your home. Suppose, for instance, a guest slips and falls on your pool deck or a flight of stairs. If you’re found liable for their injuries, liability coverage may help pay for their related medical or legal expenses. This coverage is typically included in a standard homeowners insurance policy, though limits — the maximum amount an insurer will pay toward a covered claim — will apply.

No one plans for a visitor to become injured, but it can happen. If you’re found legally responsible for an accident that injures a guest at your rented home or apartment, renters liability coverage may help pay for the guest’s related medical bills. Or, if your child accidentally throws a ball through a neighbor’s window, personal liability coverage in a renters policy may also help cover the expense of repairing the window.