Personal Liability Coverage

It’s the coverage you hope you never need, but the one that protects your life savings if the worst happens.

What is Personal Liability Coverage?

Personal Liability Coverage (Coverage E) protects you and your family members against claims and lawsuits resulting from bodily injury or property damage to others. If someone is injured on your property, or if you accidentally damage someone else's property, this coverage helps pay for legal defense costs and any damages you are found legally responsible for, up to your policy limit.

Medical Payments to Others

Closely related to liability coverage is Medical Payments to Others (Coverage F). This pays for minor medical bills (usually between $1,000 and $5,000) for people injured on your property, regardless of who is at fault. It is designed to settle small injuries quickly without the need for a lawsuit.

How Much Liability Coverage Do You Need?

Standard home insurance policies typically include $100,000 in liability coverage. However, in today's litigious society, medical bills and legal fees can quickly exceed that amount.

If you are sued for $500,000 and only have $100,000 in coverage, your personal assets—including your savings, investments, and future earnings—could be at risk. We generally recommend that homeowners in Illinois carry a minimum of $300,000 to $500,000 in personal liability coverage.

Do You Need an Umbrella Policy?

If your total assets exceed the maximum liability limits of your home and auto insurance policies, you should consider a Personal Umbrella Policy. An umbrella policy provides an extra $1 million to $5 million (or more) in liability protection over and above your underlying policies, offering incredibly affordable peace of mind.