Personal Liability Insurance

Did you know you're responsible for the injuries that happen on your property? And it can get expensive — fast. That's why personal liability coverage is so important.

What Is Personal Liability Insurance?

No matter how cautious you are, accidents happen and can be very costly. Personal liability insurance is the part of your home insurance policy that steps in when you're accused of causing someone else bodily harm or property loss. It can help pay for things like:

  • The injured party's medical bills
  • Repair costs for the person's damaged property
  • Your legal expenses if the claim escalates into a lawsuit

So say, for example, your neighbor stops by to bring your mail that accidentally got delivered to their house. Let's also imagine it is raining hard that day, and unfortunately, your neighbor takes a nasty spill on your porch. Your poor neighbor ends up in the hospital after badly hurting their neck and back. They want you to pay $300,000 in damages accrued from missed work, surgery, and follow-up doctor visits. 

If you didn't have personal liability insurance to cover this massive cost, you might have to sell your house (and other assets) to settle the debt. But if you have at least $300,000 in personal liability insurance, you can make things right with your neighbor and not sell your property or deplete your savings.

Think it won't happen to you? Consider this: according the National Safety Council (NSC), one in 16 people experienced an accidental injury in the home that necessitated medical attention.

When Do I Need Personal Liability Coverage?

As a homeowner, your house is a major asset. It may be the biggest purchase you make your whole life. That also means if you have a home, you could lose it in a lawsuit.

That's why personal liability protection is so important

You need liability coverage if:

  • You're a homeowner
  • You regularly host parties or have guests over
  • You have a pool or trampoline
  • You volunteer / work with the community

In some cases, it may even make sense for you to add extra liability protection by way of an umbrella policy. This is a cost-effective way to drastically increase your liability coverage.

What Does Personal Liability Insurance Cover?

It can help pay for:

  • Repairs and legal expenses if you accidentally damage someone's property
  • Medical bills and legal expenses if someone is accidentally injured on your property
  • Medical bills and legal expenses if you are liable for the accidental injury of someone at another location
  • An injured party’s loss of wages

Your Kin agent can help you determine how much coverage makes sense for your family.

What Personal Liability Insurance Doesn't Cover

Your personal liability coverage won't help pay for:

  • Intentional damage to someone's property
  • Injuries you purposefully cause
  • Damage to your own property or residents' property
  • Your injuries or injuries of residents in the home
  • Claims arising from your business or profession
  • Auto damage or injuries that happen in an auto accident

It's also worth noting that your personal liability coverage won't address dog bite claims unless you add an animal liability endorsement to your policy.

How Much Personal Liability Coverage Do I Need?

The amount of personal liability coverage depends on a few factors:

  • Your home's characteristics (e.g., if you have a pool, you likely need more liability protection because it increases the chance of someone getting hurt at your home)
  • Your assets (if you have a high-value home, you may need more coverage)
  • Your lifestyle (more visitors mean more opportunities for someone to get hurt)

Because bodily injury liabilities are so expensive, it's often smart to at least have the value of your home in liability protection. That's because if someone is injured and sues for medical costs and additional expenses, like emotional damage, their lawyer may use your home's value as a basis for what they can reasonably expect to win from you in a lawsuit. 

Some insurance providers offer a maximum liability coverage amount (ours is $500,000, for example). Oftentimes, increasing your liability protection has little impact on your total premium.  

Call a Kin agent at (855) 717-0022 to learn more about liability coverage, or get started on an application here.

What to Do If You're Sued

  • DO notify your insurance provider ASAP
  • DO collect all documentation about the incident
  • DO follow the instructions of your provider
  • DO follow the guidance of the attorney your provider appoints or approves
  • DO NOT agree to an informal resolution or settlement with the third party without approval from your counsel and/or provider

Learn about Our Coverage

You shouldn't need an advanced degree to understand your insurance policy. Learn about what a Kin policy offers, with real world examples, to provide clarity and provide peace of mind.

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