What Does Personal Liability Insurance Cover?

Personal liability coverage is generally comprehensive enough to cover a range of possible scenarios, including the following:

Bodily Injury or Property Damage Caused by Pets

Dog bites are some of the most common personal liability claims, with most dog breeds covered by personal liability insurance policies (though some larger, stronger, or more aggressive breeds may be excluded from specific policies). Property damage caused by pets may also apply, such as if your cat scratches up a guest's expensive leather jacket or if your dog runs through a neighbor's screen door.

Bodily Injury or Property Damage as a Result of Negligence

An injury to a guest or other party as a result of negligence may also lead to liability claims. If you fail to properly de-ice your walkway and a food delivery person slips and hurts their back, or if you're renting a single-family property and one of the trees dies and falls onto a neighbor's house, personal liability insurance may cover the costs and damages.

Legal Expenses from Lawsuits for Damages Covered by the Policy

Personal liability insurance typically also covers legal fees and court costs related to personal liability claims. This coverage exists whether or not you are found responsible for the damages.

Taken all together, personal liability coverage needs to be capable of handling the full range of costs associated with personal liability lawsuits. This includes legal fees, medical bills, lost wages, and even death benefits. Personal liability insurance for renters usually does not cover accidents involving motor vehicles (which are usually covered by auto insurance policies), claims related to professional activities (which should be covered by business insurance policies), or injuries involving two or more people living in the same dwelling.

It's also worth noting that personal liability insurance does not cover any intentional bodily harm or property damage. Also, most policies will contain specific exclusions or exceptions. As such, you should make sure to familiarize yourself with the details of your coverage, so you know what kind of support you can expect if an accident should occur.