Updated: October 29, 2025
Advertising & Editorial Disclosure
Personal liability coverage is part of every standard home insurance policy and pays for legal defense costs, medical fees, lost wages, death benefits and more.
Intentional, car-related or business-related damage is not covered by personal liability coverage.
Your lifestyle, risk tolerance and value of your assets can help determine how much personal liability coverage you should get.
Personal liability coverage is a standard part of every homeowners insurance policy. It provides financial protection in case you unintentionally injure someone or damage their property at home or elsewhere. For instance, it pays for:
Personal liability coverage can offer financial protection from several common situations. Here's what home insurance covers in personal liability:
If a visitor trips on your walkway and gets hurt, personal liability coverage can pay for their medical expenses and potential legal costs. This protection also applies outside your home — for example, if you accidentally injure someone at a park.
If your dog knocks over a guest and causes an injury, or your child injures someone, your policy covers the resulting medical bills. Although some insurers may limit coverage for certain dog breeds.
Personal liability insurance also covers accidental damage to a guest’s belongings, such as spilling a drink on their laptop or breaking a valuable item during a visit.
If something on your property (like a tree branch) falls and damages a neighbor's shed, your personal liability coverage pays for repairs.
Because home insurance covers sudden and accidental events, certain liability claims aren't covered, such as:
Personal liability insurance does not cover car accidents or damage involving vehicles. For any car-related claims, you’ll need separate auto insurance.
Running a business from home creates different risks. Personal liability coverage usually excludes business-related claims, meaning you'll need a dedicated business insurance policy.
Damage or injuries caused on purpose (like vandalism) are not covered. Personal liability insurance only applies to accidental incidents.
If someone who lives in your home is injured, personal liability insurance won't cover their medical costs. Individual health insurance policies handle these expenses.
Some insurers exclude injuries caused by specific dog breeds known for aggressive behavior. Check your policy details to see if any breed or activity restrictions apply.
Personal liability coverage offers broad protection, but it doesn't cover everything. Before you buy a policy, review the exclusions carefully and consult an insurance professional to make sure your home and assets are fully protected. Consider buying umbrella insurance to increase your coverage.
Personal liability coverage is automatically included in most standard homeowners insurance policies. If you’re just about to buy coverage, follow these steps:
Start by determining how much coverage you need for both your home and personal liability. Consider factors like the type of home you own, its location, and the total value of your assets and possessions.
Decide on your dwelling coverage, personal property coverage and personal liability limits. Ensure you’re choosing the right limits for your needs and avoid under- or over-insuring.
Think about any additional protections you might need beyond standard homeowners insurance, such as flood insurance, earthquake insurance or special endorsements based on your property's risks.
Gather important details like your home’s address, recent appraisal reports, inspection results, and any previous insurance documents. Having this information ready helps you get accurate quotes faster.
Shop around for homeowners insurance quotes from several providers. Comparing options ensures you find the most affordable home insurance provider for the coverage you need.
After choosing a policy, confirm important terms like your billing schedule, deductible amount and policy start date. Make sure your personal liability limits match your risk exposure.
Once you finalize everything, submit your application and pay the first premium. Your homeowners insurance (including your personal liability coverage) will begin on the start date your policy lists.
If your current personal liability coverage isn’t enough, you can easily increase your limit for added protection. As your life changes, whether through new assets, major purchases or lifestyle shifts, regularly review your policy to make sure your liability limits still fit your needs.
Most standard homeowners insurance policies include between $100,000 and $500,000 in personal liability coverage. The right amount for you depends on your financial situation and risk exposure. Carry at least $100,000 in coverage at minimum.
When setting your liability limits, consider the total value of your assets and the potential financial risks you want to guard against.
Choosing the right amount of personal liability coverage depends on your lifestyle, risk factors and financial situation. Here are key factors to evaluate:
Personal liability insurance covers what you own today and protects your future wealth. As your assets grow over time, so does your financial exposure. Choosing higher liability limits now safeguards everything you're building, from home equity to retirement savings, against unexpected legal claims.
Personal liability coverage is included in standard homeowners insurance and pays for costs if you cause injury or property damage. Coverage includes legal defense, medical bills, lost wages and even incidents that happen away from home. But it excludes intentional harm, auto accidents, business-related claims and injuries to household members.
The right amount of coverage depends on your lifestyle, risk tolerance and the value of your assets. Standard policies usually provide $100,000 to $500,000, but higher limits or umbrella insurance might be necessary for added protection. Review your needs regularly to ensure your policy keeps pace with your financial situation.
Ensuring the right amount of personal liability insurance meets policy requirements and safeguards your financial stability and peace of mind. Our answers to common questions cover the intricacies of personal liability coverage in home insurance.
Yes, homeowners insurance covers civil lawsuits and any settlements or judgments up to your policy's liability limits if a plaintiff sues you for a covered incident.
The amount you need depends on your total assets and risk exposure. Most experts recommend carrying at least $300,000 to $500,000 to protect against major claims, especially if you have a lot of savings, investments or property.
Yes. Personal liability insurance follows you, meaning it covers incidents that happen away from your home, like if you injure someone at a park.
Yes, personal liability coverage in home insurance covers injuries or property damage pets cause, though some insurers exclude certain dog breeds.
No. Medical payments coverage pays for minor guest injuries regardless of fault, while personal liability covers larger claims, legal fees and lawsuits when you’re found responsible.
Our Research Approach
Personal liability claims can reach hundreds of thousands of dollars, making coverage limits one of the most critical decisions homeowners face. We designed our research to show how personal liability protection varies across insurers and coverage levels, helping you choose limits that match your assets and risk exposure.
Data Sources and Analysis
We collected rate filings from state Departments of Insurance across all 50 states and analyzed pricing through Quadrant Information Services' comprehensive database. Our evaluation focused on both standard homeowners packages and expanded coverage options for homeowners with higher liability needs.
Homeowner Profile for Rate Comparisons
To ensure fair comparisons, we used a consistent profile: a home built in 2000 with wood-frame construction, composite shingle roof and a homeowner with a credit score between 769 and 792.
Standard Coverage Limits
Our baseline quotes included $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in personal liability coverage and a $1,000 deductible.
High-Value Home Analysis
We also modeled policies for higher-value properties with $1 million in dwelling coverage, $500,000 in personal property coverage and $1 million in personal liability coverage. This dual approach shows how liability protection scales with property value and helps homeowners understand whether standard limits adequately protect their assets.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
