Homeowners InsuranceHomebuying Glossary
Liability Coverage
Insurance that protects you financially if someone is injured on your property or you damage someone else's.
In plain English
Liability coverage pays for legal defense and damages if you're found responsible for someone else's injury or property damage — for example, a guest slipping on your icy driveway.
Why it matters
Given how expensive lawsuits can be, many homeowners choose to carry more liability coverage than the policy minimum, sometimes supplemented by an umbrella policy.
Where you'll run into it
Guides and tools on TheBuyingPath that cover liability coverage in context.
Related terms
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