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What Is Liability Coverage? Homeowners liability insurance can help protect you if you or your family member is found legally responsible for injuring someone else or damaging someone else's property. Typically, homeowners liability insurance can help protect you whether the injury or property damage happens on or away from your property.
Youâre found liable for this accident with resulting damages of $1 million. Fortunately, as a proactive protector, youâve already got an American Family auto policy with liability protection up to $250,000 for this claim, plus youâve got an extra layer of personal umbrella coverage up to $1 million. Your auto policy would cover the first $250,000, while your umbrella policy would take care of the remaining $750,000.