What Is Home Personal Liability Insurance?

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Home personal liability insurance exists in the event that a homeowner is sued for injuries that are sustained by a visitor to the property. Protection from liability is provided by Coverage E on a homeowner's insurance policy but can also be provided by a personal umbrella liability insurance policy.

Function

Home personal liability insurance protects an individual and family members from a claim or lawsuit that results from bodily injury or property damage to another person. Coverage is provided when an accident occurs on a homeowner's property that is the result of weather conditions, the condition of the property or negligence on the part of the policyholder.

Types

Personal liability coverage on a homeowner's policy is provided per occurrence, or for each accident that occurs. The amount of coverage for personal liability can range from $100,000 to $300,000 depending on what is needed by the policyholder. Insurers typically do not provide coverage below $100,000 because this will leave a policyholder underinsured if a claim occurs. Increased limits of liability are often recommended and can be provided by a personal umbrella policy.

Considerations

Individuals who require additional liability coverage above the amount included on a standard homeowner's policy can purchase a personal umbrella policy. Umbrella coverage sits on top of an underlying policy and pays for amounts that exceed the liability limits. This means that if an individual has $300,000 of liability coverage on their homeowners insurance and has a $500,000 judgment awarded, an umbrella policy will cover the additional $200,000.

Exclusions/Limitations

Home personal liability insurance coverage has exclusions and limitations that apply just like any other type of insurance policy. Exclusions can vary from insurer to insurer and are listed on the insurance policy. All homeowner's policies that provide coverage for home personal liability do not provide coverage for intentional acts that cause bodily injury or damage to the property of others. Coverage is also not provided for any types of business activities.

Features

Coverage E, or home personal liability coverage, has unique features. For example, a deductible is not required for payments to be made. This means that all an individual needs to do for coverage to be effective is to pay the premium for the policy.

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