Personal liability insurance coverage is an extension of basic renters and homeowners insurance policies. It protects policyholders from the financial burden they would experience if someone is injured in their apartment or home. Extending the liability coverage can protect your investment and your personal savings from accidents that occur to your guests.  

What Does Personal Liability Insurance Cover? 

Guests can sustain unexpected injuries regardless of how well you maintain your house. They might slip and fall, your dog might bite someone, or playing children might trip on the stairs. For homeowners, a passing stranger might injure themselves on the sidewalk that's part of your property. 

If a lawsuit gets filed, the injured party may be awarded damages in the form of medical bills, lost wages, and pain and suffering. Personal liability insurance will cover the damages and the attorney's fee up to your policy limit. 

The insurance protects policyholders against property damage. If you, a member of your household, or a pet are responsible for damaging another's property, the policy may cover the claim. 

What Doesn't Liability Insurance Cover? 

Liability policies cover a wide range of possible incidents, but the exclusions depend on the plan. Most policies won't cover intentional or criminal acts. 
There are also some restrictions. For example, some animals and dog breeds may not be covered by the liability plan, but this varies depending on the provider. 

Some homes have attractive nuisances, like swimming pools, playground equipment, or trampolines. Depending on the provider, attractive nuisances will be covered by either the liability insurance or by Coverage B homeowners insurance. Coverage B protects structures that are detached from the house itself. Speak to an insurance professional for clarification on your policy. 

How Much Do I Need? 

Policies differ with providers, but on average, the basic liability plan covers up to $100,000. If the injured party is awarded damages beyond the plan's limit, the policyholder would have to pay for the remaining amount out-of-pocket. However, policy limits can be increased by adding an excess liability or umbrella insurance plan. 

For over 100 years, renters and homeowners have relied on First Insurance Company of Hawaii, LTD. As a trusted liability insurance carrier, they help their clients protect themselves from unexpected but potentially costly accidents. They have also received an A+ rating from AM Best, which rates insurance companies, so you can rest easy knowing they are a stable company that will be there for you in your time of need. They're based in Honolulu and have more than two dozen independent agencies selling their products throughout the state. For more information, visit their website or call (808) 527-7777.