What does personal liability coverage typically extend to?

Personal liability coverage typically extends to household relatives and invited guests, making this choice the correct one. This type of coverage is designed to protect the insured from financial loss in the event that they are found legally responsible for bodily injury or property damage to others. It generally includes not only the primary insured individual but also their family members who reside in the same household, as well as guests who are lawfully on the property.

This means that if, for example, a visitor gets injured on the insured's property due to an accident that the insured is deemed responsible for, the personal liability coverage would help cover legal fees and any settlements or judgments that may arise from the incident. This coverage is crucial for ensuring that the main individuals associated with the policy, as well as their guests and family members, are adequately protected against unforeseen liabilities.

The other options can be misleading. Personal liability coverage is not limited to just the primary insured individual, nor is it confined solely to property damage claims; it can also cover bodily injury. Additionally, liability coverage does not extend to negligence claims against businesses, as those scenarios typically require separate commercial liability insurance.