Personal liability coverage protects you if someone is injured or their property is damaged because of your actions at home or elsewhere.
Find out if you're overpaying for homeowners insurance below.
Updated: May 1, 2025
Advertising & Editorial Disclosure
Personal liability insurance is part of every standard home insurance policy, covering the costs of accidental injuries or property damage sustained at home.
Personal liability coverage does not include car-related damage, intentional damage, damage as a result of neglect or business-related issues.
To determine your personal liability coverage, consider your lifestyle, risk tolerance and the value of your assets.
Ensure you're getting the best rate for your home insurance. Compare quotes from the top insurance companies.
Personal liability insurance is a standard part of every homeowners insurance policy. It protects you financially if you unintentionally injure someone or damage their property, whether the accident happens at your home or elsewhere. From a child’s friend getting hurt while playing in your yard to a pet damaging a guest’s belongings, personal liability coverage helps shield you from unexpected legal and medical expenses.
Personal liability coverage in homeowners insurance helps pay for accidental injuries or property damage you cause, either at home or elsewhere. It protects you from costly legal and medical bills in several common situations:
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 unintentionally hurts someone, your policy can help cover the resulting medical bills. Some insurers, however, 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 can help pay for repairs.
Personal liability insurance covers a lot — but not everything. Knowing what isn’t included helps you avoid gaps in protection and plan for extra coverage if needed.
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. These expenses are typically handled by individual health insurance policies.
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.
Personal liability coverage is automatically included in most standard homeowners insurance policies. If your current 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 — it’s important to regularly review your policy to make sure your liability limits still fit your needs. If you're buying a new policy or adjusting your current one, 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 the dwelling coverage amount to protect your home structure and choose personal liability limits that can fully shield your assets against potential lawsuits or claims.
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 best value for the coverage you need, not just the lowest price.
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 everything is finalized, submit your application and pay the first premium. Your homeowners insurance — including your personal liability coverage — will begin on the start date listed in your policy.
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. At minimum, it's smart to carry at least $100,000 in coverage — a small extra cost that can save you from paying out of pocket for medical bills, legal fees and other damages.
Accidents on your property or injuries you accidentally cause can lead to costly lawsuits. Beyond medical expenses, you could be responsible for lost wages, pain and suffering claims or court-ordered compensation. 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 things to evaluate:
Think about any features on your property that could increase the chance of injuries, such as a swimming pool, trampoline, treehouse or owning certain dog breeds.
Consider whether your activities could accidentally put others at risk. Hobbies like skiing, hunting, boating or even surfing can increase your liability exposure.
If you frequently host gatherings, parties or large events at your home, your risk of accidents — and potential lawsuits — rises.
Your personal comfort with risk plays a role. Some homeowners choose higher liability limits for peace of mind, while others are willing to accept more personal financial exposure.
Add up the value of your home, savings, investments and other assets. If you face a lawsuit and damages exceed your liability coverage, your personal assets could be targeted. Choosing coverage that matches or exceeds your asset value helps protect your financial future.
Personal liability insurance isn’t just about covering what you own today — it’s about protecting your future wealth. As your assets grow over time, so does your financial exposure. Choosing higher liability limits now can help safeguard everything you're building, from home equity to retirement savings, against unexpected legal claims.
In this page, we explained what personal liability coverage is, what it protects against and how much you might need based on your lifestyle and financial risks. Personal liability is built into every standard homeowners insurance policy, providing critical protection if you accidentally injure someone or damage their property — whether it happens at home, in your yard or even off your property.
Having the right amount of personal liability coverage helps shield not just what you own today, but the future wealth you’re building. By understanding your risk exposure and setting the right coverage limits, you can protect your home, assets and long-term financial security against unexpected legal claims.
Ensure you're getting the best rate for your home insurance. Compare quotes from the top insurance companies.
Ensuring the right amount of personal liability insurance is not just about meeting policy requirements; it's about safeguarding one's financial stability and peace of mind. Our frequently asked questions navigate the intricacies of personal liability coverage in home insurance.
Yes, homeowners insurance typically covers civil lawsuits and any settlements or judgments up to your policy's liability limits if a plaintiff sues you for a covered incident.
Liability coverage is a standard component of most homeowners insurance policies, designed to protect against financial losses if someone gets injured on your property or due to your actions.
No, homeowners insurance generally does not cover personal injuries sustained by the homeowner. Instead, it primarily covers injuries to guests or third parties on the property. However, in some instances, the policy may cover personal injury to the homeowner, depending on the incident. Clarify with your provider what events are covered.
Typically, there is no deductible for personal liability claims under a homeowners insurance policy. However, reviewing your specific policy details is essential to confirm.
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 significant savings, investments or property.
Yes. Personal liability insurance typically follows you, meaning it can cover incidents that happen away from your home — like if you accidentally injure someone at a park.
Yes, most insurers allow you to adjust your personal liability coverage limits by updating your policy or adding an umbrella policy for extra protection.
Why Trust MoneyGeek
MoneyGeek bases its homeowners insurance insights on real-world data and independent analysis. We evaluate insurance offerings using official rate filings collected from state Departments of Insurance across all 50 states, combined with pricing data from Quadrant Information Services. This approach helps us provide accurate, up-to-date information about personal liability coverage and policy options.
How We Evaluated Homeowners Insurance Providers
We analyzed insurers based on premiums, policy features and available coverage levels, using Quadrant’s comprehensive pricing database. Our evaluation included both standard homeowners insurance packages and expanded coverage options designed for higher-value properties and broader liability protection.
Homeowner Profile Used for Comparisons
To ensure fair comparisons, we used a consistent homeowner profile featuring:
Coverage Details
Unless otherwise specified, our quotes were based on these standard coverage limits:
We also evaluated quotes for higher-value homes by modeling policies with:
This process allowed us to assess how insurers perform for both typical homeowners and those needing more extensive liability protection.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
