 TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: Do You Have Enough Homeowners Liability Insurance?\n--------------------------------------------------\nLiability claims accounted for just 2.8% of all homeowners insurance claims in 2019. As rare as they are, however, they can be costly. In 2019, the average loss from a liability claim was $22,363. Fortunately, protecting yourself is fairly inexpensive. Home liability insurance usually costs about $10 annually for each $100,000 worth of coverage, according to an Insure.com analysis.\nBut how much liability coverage is enough? In a lawsuit, all your assets could be at risk, including your home, retirement accounts, investments and savings, so liability coverage should provide coverage that's at least equivalent to your total net worth.\nMost homeowners insurance starts with $100,000 worth of liability insurance, but you can buy more. You may also want umbrella insurance, which provides additional coverage in increments of $1 million for liability coverage that exceeds the limits of your home or auto insurance policy. You'll generally need a home and auto policy with the same insurer and at least $300,000 in homeowners liability insurance to buy umbrella coverage. An insurance agent can help you determine the amount and type of coverage you need. END