You probably already have some liability protection, and you may not even realize it. If you own a home, rent an apartment, drive a car, and/or own a boat (and you're properly insured), you have some liability coverage. Standard homeowners insurance, renters insurance, auto insurance, and even some boat insurance policies provide a degree of protection against certain types of personal liability.

While these basic coverages are extremely important, they may not be enough in many cases. You should evaluate your current liability protection to see whether you are adequately covered. If you're not, consider a personal umbrella liability policy.

Homeowners insurance
One of the lesser-known features of homeowners insurance is liability protection. The liability coverage under a homeowners insurance policy is surprisingly broad. Typical homeowners policies cover you for damage and injuries caused by you or your family, both inside and outside your home. For example, if a delivery person slips on your icy porch, your son hits a baseball through the neighbor's picture window, or you run over someone's foot with a shopping cart at the supermarket, the liability coverage under your homeowners policy would cover property damage, medical payments, and even legal defense costs associated with these incidents, up to the limits stated in the policy.

Note: Homeowners insurance does not cover motor vehicles that are registered and licensed by the state department of motor vehicles. However, depending on the provisions of the policy, other vehicles may be covered.

Renters insurance
If you rent your home, renters insurance should be included as part of your comprehensive protection plan. In addition to protecting your personal property, renters insurance provides valuable personal liability coverage. If you rent, you need liability protection for several reasons. First of all, you're at risk if someone is injured in your rented residence. If you cause a fire or other accident in your building and others are injured (or their property is damaged), you could be sued for damages. If you don't have renters insurance, you could be forced to pay for these costs out of your own pocket. With renters insurance, you will be covered up to a certain liability limit, with no deductible.

Auto insurance
Auto insurance provides two different types of liability coverage: bodily injury liability and property damage liability. Bodily injury liability pays claims resulting from injuries to passengers in your car or in a car you collide with (if you are found legally responsible for an auto accident). Property damage liability pays for property you damage with your automobile--for example, if you lose control of your car, skid off the road, and crash through someone's living room. The liability coverage under your automobile insurance policy will pay for actual damages, as well as court-ordered judgments for other damages (such as pain and suffering) and any legal defense costs if you are sued. The coverage limits vary from policy to policy, but most states require you to carry a minimum amount of liability coverage.

Boat insurance
If you own a boat over a certain length (and it's properly insured), the insurance policy covering the boat is another source of liability coverage. Larger boats require their own insurance policies, while smaller watercraft are typically covered under your homeowners insurance policy. Most boat policies (such as watercraft package policies and personal yacht insurance policies) include some liability insurance for incidents that might occur while you are operating your boat. However, certain types of policies provide only physical damage coverage for the boat itself, so it's important to know what type of coverage you have.

Learn More...

Overview | Understanding The Basics | Coverage You Already Have?
Amounts Of Coverage | Personal Umbrella Policy

Please Note: The information contained in this Web site is provided solely as a source of general  information and resource.  It is a not a statement of contract and coverage may not apply in all areas or circumstances.  For a complete description of coverages, always read the insurance policy, including all endorsements.