In homeowners insurance, what does liability coverage protect against?

Liability coverage in homeowners insurance is designed to protect the policyholder from legal responsibility for bodily injury or property damage that they, their family members, or even their pets may cause to others. This means that if someone is injured on your property or if you accidentally damage someone else's property, liability coverage can help pay for legal fees, medical expenses, or damages awarded in a lawsuit.

Understanding the broader context highlights why the other choices do not accurately describe the function of liability coverage. For instance, natural disasters impacting the home is typically covered under the dwelling or property coverage section of a homeowners policy, not liability. Similarly, loss or theft of personal property is covered under personal property protection, which does not involve liability. Employer liability claims fall under different types of insurance, specifically workers' compensation or general liability, which are not included in a homeowners policy. Hence, liability coverage is specifically focused on protecting against lawsuits related to injuries or damages caused by the insured or their family members to others.