ABA Family Legal Guide

Home Ownership

Property Insurance and Other Protections

Liability Insurance

What is liability insurance?

The liability portion of your homeowner's policy is designed to cover unintentional injuries on the premises and unintentional damage to other people's property. In other words, injuries caused by your negligence are covered; those you inflict on purpose are not covered. Given your potential liability as a homeowner, you're asking for trouble if you don't carry adequate liability insurance. It takes only one person who is seriously injured by your negligence to generate a huge liability award and deplete your financial nest egg, not to mention your psychological well-being.