Liability Coverage
InsuranceGlossary term
Definition
Insurance protection that pays for damages or injuries you cause to others. Included in auto, homeowners, and renters insurance. Covers legal defense costs, medical bills, and property damage claims up to your policy limits.
Related terms
- Umbrella InsuranceAdditional liability coverage beyond standard home and auto insurance limits. Protects assets in case of major claims or lawsuits. Typically provides $1-5 million in coverage.
- Renters InsuranceInsurance that covers a renter's personal belongings against theft, fire, and certain other damages, plus provides liability protection. Typically costs $15-30 per month and is not covered by a landlord's building insurance policy.
- PremiumThe amount paid for an insurance policy, typically monthly, quarterly, or annually. Premium costs vary based on coverage amount, deductible, and risk factors.
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