Most homeowners know their insurance helps pay to repair or rebuild their home after a covered loss. What many people do not realize is that their policy also includes liability coverage. This important protection can help if you are legally responsible for causing injury to someone else or damaging another person's property.
Liability coverage is a part of your home insurance policy that helps protect you if you are found legally responsible for causing injury to another person or damage to their property. It can help pay for legal defence costs, settlements, or court awards up to the limits of your policy.
Accidents can happen at home or while you are away. Liability coverage is designed to help protect your finances if an unexpected event leads to a claim.
Personal liability insurance can help cover many common situations. For example, it may help if:
In many cases, your policy will also pay for the legal costs to defend you, even if the claim is ultimately dismissed. Every policy has its own terms and limits, so it is important to review your coverage with your insurance broker.
While liability coverage protects you in many situations, there are important exclusions.
Most home insurance policies do not cover:
Some policies may also limit or exclude claims involving certain dog breeds, short-term rentals, or other higher-risk situations. Coverage varies between insurance companies, so always review your policy wording.
Your home insurance policy typically protects more than just the person named on the policy.
In most cases, yes. Family members who live in your household, including dependent children, are generally covered under your home's liability insurance. If your child accidentally causes injury to someone else or damages another person's property, your policy may respond, subject to its terms and conditions.
If your children live away from home while attending school full time, they may still qualify for coverage under your policy. Your insurance broker can explain how your specific policy applies.
Many home insurance policies provide liability coverage if your pet accidentally injures someone or damages another person's property. For example, if your dog bites a visitor, your liability insurance may help pay for the resulting claim.
However, some insurers have exclusions or restrictions based on the type of animal or a pet's previous history. Exotic pets, pets with a violent history, certain breeds of dog or cat, or large numbers of pets can all lead to limits of liability protection. It is important to let your insurer know about your pets to make sure you have the right protection.
At Armour Insurance, we recommend carrying at least $2 million in personal liability coverage on your home insurance policy.
Liability claims are increasingly exceeding $1 million. If you have only $1 million in coverage and are found liable for $1.25 million in damages, your insurance would pay the first $1 million, but you would be responsible for the remaining $250,000.
Increasing your liability limit to $2 million is often an affordable way to add valuable financial protection. Your insurance broker can help you choose the liability limit that best fits your needs.
In many situations, yes. Home insurance liability coverage often follows you wherever you go.
For example, if you accidentally injure someone while riding your bicycle, or your child accidentally damages someone else's property while visiting friends, your home insurance policy may provide liability protection.
There are exceptions, and some situations may be covered under other insurance policies instead. Your broker can explain how your liability coverage applies outside your home.
An umbrella insurance policy provides additional liability protection above the limits of your home and auto insurance policies. More information on umbrella insurance is available here.
You may want to consider umbrella insurance if you:
Umbrella insurance can provide an extra layer of financial protection when a major lawsuit exceeds the limits of your standard insurance policies.
Liability coverage is one of the most valuable parts of your home insurance policy because it helps protect your finances when unexpected accidents happen. Understanding what is covered, who is protected, and when you may need additional coverage can help you make informed decisions about your insurance.
Every homeowner's situation is different, and coverage can vary between insurers and policies. If you have questions about your liability coverage or want to review your policy limits, click the buttons below to connect with one of our insurance brokers or request a personalized home insurance quote.
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