Does Homeowners Insurance Cover Personal Liability?

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• There are three components to homeowners insurance: dwelling, personal liability, and personal property coverage.
• Personal liability protects homeowners if someone is injured on their property and sues for damages.
• A basic homeowners policy has a $100,000 liability limit, but you can increase it or get an umbrella policy.
• See Insider’s picks for the best homeowners insurance companies.

Homeowners insurance protects the dwelling, your belongings, and offers liability coverage for injuries that happen on your property. There are three components to homeowners insurance: dwelling coverage, personal property coverage, and personal liability coverage.

What is personal liability insurance?

If the dog bites a guest, the mailman slips on your walkway, or someone is injured using your swimming pool, personal liability insurance protects you. 

Homeowners insurance offers homeowners personal liability protection if someone is injured at your property or sues for damages. Some carriers offer identity theft and cyber liability as part of their personal liability coverage or as an add-on rider.

There are limits to standard personal liability coverage depending on your policy and insurance carrier. According to Allstate, basic personal liability homeowners policies typically have a $100,000 coverage limit.

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

***If you live in hurricane or tornado areas, additional windstorm rider may be required

Increase your personal liability coverage if you have a pool or pet

Having certain items — like a pool or trampoline — can increase your liability as a homeowner. Also, exotic pets and certain dog breeds are excluded from some homeowners insurance policies. Some homeowners insurance companies will not offer coverage based on the size and breed of the dog, especially large dogs and breeds considered to be aggressive. Pit bulls usually top the list of dog breeds excluded from policies.

“A pool is considered an ‘attractive nuisance’ and will increase your liability risk,” according to the Insurance Information Institute (III). The Institute recommends increasing your liability coverage to “at least $300,000-$500,000” if you have a swimming pool. 

Similar to swimming pools, some homeowner insurance carriers consider trampolines an “attractive nuisance” and exclude them in policies. Other carriers have specific language for trampolines, requiring netting or that they are anchored to the ground depending on your state, according to Steve Wilson, senior underwriting manager at Hippo Insurance. 

An umbrella policy is additional liability coverage that’s available as an add-on rider to your homeowners or renters insurance. Umbrella coverage kicks in after you have used up your personal liability coverage limit.

Another option if you have a restricted breed and cannot get an umbrella policy to cover your pet is canine liability insurance. Canine liability insurance offers coverage if your dog bites or attacks someone. It’s a separate policy that is helpful if your homeowners insurance doesn’t offer coverage for your breed. 

How much is personal liability insurance for homeowners? 

The average annual homeowners insurance premium in the United States in 2017 was $1,211, according to the National Association of Insurance Commissioners (NAIC).

As previously mentioned, the standard homeowners personal liability coverage is $100,000. The cost to increase your personal liability coverage amounts depends on your home and location, but is relatively inexpensive.

A million-dollar umbrella policy costs between $150 and $300 a year, according to the Insurance Information Institute. However, the Institute notes that most carriers require homeowners to have at least $300,000 in personal liability coverage before selling them an umbrella policy.

Ronda Lee is an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. She is also a licensed attorney who practiced litigation and insurance defense.