What is the purpose of personal liability coverage in property insurance?

Personal liability coverage in property insurance is designed to protect policyholders against legal claims that may arise due to injuries or damages for which they may be held responsible. This can include situations where someone is injured on their property, or if their actions inadvertently cause damage to someone else's property.

The coverage typically helps pay for legal expenses associated with defending against such claims, as well as any settlements or judgments that may result from a lawsuit. This is crucial for homeowners and renters as it provides financial protection, ensuring that they are not left vulnerable to substantial out-of-pocket costs if a claim is made against them.

In contrast, other options do not align with the purpose of personal liability coverage. For instance, covering theft of personal items pertains more to personal property coverage; paying mortgage payments is an obligation independent of insurance coverage; and home maintenance costs are not covered by any insurance but rather are the owner's responsibility. Thus, the focus of personal liability coverage is specifically on legal protection and responsibility for injuries or damages.