What does personal liability insurance protect you against?

Personal liability insurance is designed to protect individuals from financial losses that may arise when they are held legally responsible for causing damage or injury to another person or their property. This insurance covers legal fees, medical expenses, and damages that the policyholder might be required to pay as a result of such incidents.

When someone is found liable for causing injuries to another person or for damaging someone else's property, personal liability insurance helps cover those unexpected expenses, avoiding a significant financial burden on the policyholder. It is particularly relevant in scenarios such as accidents that occur on your property where someone gets hurt or where you accidentally damage someone else’s belongings.

The other options focus on different aspects of insurance coverage. For instance, repayment for damages to your property would fall under property insurance, while financial responsibility for injuries to household members might be covered by health insurance or specific additions to a homeowners' policy. Loss of income due to damages pertains to business interruption or other kinds of loss of income insurance, which also does not fall under personal liability coverage.