Personal liability coverage: What it is & why you should consider it

by Bill and Aby Brooks, REALTORS® 05/29/2022

Personal liability coverage is included in your homeowners insurance policy, but also available to purchase separately. Having additional liability coverage can help protect you financially from any claims made against you for injury or damages. However, it can be difficult to determine whether you actually need additional liability coverage.

Here are some things to consider if you’re thinking about personal liability insurance:

What does personal liability insurance cover?

Personal liability coverage provides financial support if you’re sued or found liable in court. Here are some examples of situations included in most personal liability insurance:

  • Somebody gets injured in your home or at another property you own.
  • Somebody gets injured in a traffic accident where you’re at fault.
  • Accidental property damage caused by you.
  • Lawsuits for libel, slander or false arrest.
  • Paying court fees for lawsuits brought against you.

What is excluded from coverage?

While details vary from one policy to the next, the following are typically excluded from personal liability insurance coverage:

  • Your personal injuries.
  • Damage to your own property.
  • Business-related accidents.
  • Workers compensation.
  • Any situation where you’re held liable under a contract.

Determine possible risk factors

If you wonder whether you should have personal liability coverage, the best way to start is to identify any possible risk factors related to your property or lifestyle. Some questions to consider might include:

  • Do you own one or more rental properties?
  • Do you frequently entertain large groups of people at home?
  • Do you have a pool or trampoline in your yard?

It’s a good idea to consult a financial advisor for help identifying risk factors and strategies for protecting your assets. Whether you get personal liability coverage is up to you, but the more you understand about the options, the better choice you can make for your situation.

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About the Author
Author

Bill and Aby Brooks, REALTORS®

Aby’s understanding of excellent customer service stems from her extensive professional background. Prior to earning her real estate license in 2005, along with her college degree that focuses on business and engineering, Aby was the head of purchasing, inventory and quality assurance for an OEM medical and aerospace manufacturing company. Known by her clients and fellow realtors for her tenacity, honesty, integrity, and attention to detail, as a full-time realtor, she is also appreciated for her quick response to her client’s needs. Aby has been an avid horse rider and owner since the age of eight, with her husband Billas a local firefighter/EMT they are very active within the community. Bill served as a US Army Airborne Ranger in 75th Ranger Regiment, he is a combat-wounded veteran who was awarded a Purple Heart. Bill's background as facility Manager for an International metals company and as a firefighter/EMT gives him the experience, attention to detail and the desire to go above and beyond to serve his customers. The Brooks' serve on the board of a local non-profit (501c3) that gives back to the veterans, first responders and their families. The Brooks family resides on their small ranch in Manatee County. Aby& Bill excel in all types of real estate and their passion is helping people. “We genuinely like people, growing up in Sarasota and Manatee counties and now raising our own family here, it is an absolute pleasure to share our growing area with newcomers and reminisce with longtime residents. Our area has so much to offer and it is our business to help folks buy and sell their own piece of paradise.”