What does "Personal Liability" coverage protect the insured against?

"Personal Liability" coverage is designed to protect the insured from financial losses stemming from their legal responsibility for bodily injury and property damage to others. This coverage comes into play when the insured is found to be at fault for an accident that causes injury or damages to another person or their property. For example, if a guest is injured while visiting the insured's home or if the insured accidentally damages someone else's property, personal liability coverage would help cover the legal expenses, medical bills, and any settlements or judgments that may arise. This protection is an essential aspect of homeowners policies, as it ensures that individuals have financial safety in the event of unforeseen incidents that could result in a legal claim against them.

In contrast, the other choices point to different types of coverage or risks not encompassed by personal liability insurance. Losses due to theft would typically be covered under personal property coverage, while loss of income from rental properties pertains to landlord insurance, and damage from natural disasters generally falls under specific additional coverage or endorsements, such as flood or earthquake insurance.