top of page

Understanding Personal Liability

DKR & Associates Insurance Services

What you need to know

Personal liability is a critical aspect of insurance that many people may not fully comprehend. This type of coverage is designed to protect you in the event of an accident, in or out of your home, that results in bodily injury or property damage for which you are held legally responsible. It's an essential component of insurance policies, including homeowners, renters, and even automobile insurance. Let’s delve into what personal liability is, why it's important, and how it works.

Personal liability occurs in the event of an accident, in or out of your home, that results in bodily injury or property damage that you are held legally responsible for. This responsibility can lead to personal liability claims, which could encompass various expenses, such as medical bills, legal fees, and more, if a guest is injured on your property.

Here are some key points to consider when it comes to personal liability:

Protection Against Financial Consequences: Personal liability coverage provides you with financial protection in the event of a lawsuit resulting from an accident that occurred on your property or due to your actions. Without this coverage, you may be personally responsible for covering medical bills, legal fees and potential settlements.

Covering Medical Expenses: If someone is injured while on your property, your personal liability coverage can help cover their medical expenses. For example, if a guest slips and falls in your home or is bitten by your dog, your insurance may help pay for their medical bills.

Legal Defense: In addition to covering medical expenses, personal liability insurance can also cover legal expenses if you're taken to court due to a covered incident. This includes lawyer fees, court costs and any potential settlements or judgments.

Property Damage: Personal liability insurance doesn't just cover bodily injury; it can also protect you in case you accidentally damage someone else's property. For example, if you accidentally hit a neighbor's fence with your car, your personal liability coverage can help pay for the repairs.

Coverage Limits: Personal liability coverage typically has limits, which are the maximum amounts your insurance company will pay for a covered claim. It's essential to review your policy to ensure you have adequate coverage for your specific needs.

Umbrella Insurance: For those who want additional protection beyond their standard insurance policies, umbrella insurance is an option. It provides extra liability coverage that kicks in when the limits of your other policies are exceeded.

Responsibility and Prevention: While personal liability insurance is essential, it's equally important to take steps to prevent accidents and minimize risks. Maintaining a safe and well-maintained home, being cautious when hosting guests and practicing responsible behavior can help reduce the likelihood of needing to rely on personal liability coverage.

Personal liability insurance is a crucial component of various insurance policies, and understanding how it works is essential for protecting yourself financially in case of accidents. Accidents can happen to anyone, and having the right coverage in place can provide peace of mind and financial security in challenging times. Review your insurance policies today and make sure your personal liability limit is at its highest allowed limit by your primary carrier for both your auto and home. Make sure “Personal Injury” is included as a covered peril within the personal liability coverage of both your auto and your home.

If your primary carrier does not offer umbrella coverage, please let us know, as we have a Stand Alone Umbrella product available.

To learn more and how DKR & Associates Insurance Services can help, reach out via email at or by phone at 800.331.3001. Discover all of our services we provide at


bottom of page