What happens if a homeowner does not have liability coverage in their policy?

When a homeowner does not carry liability coverage in their insurance policy, they are fully responsible for all liabilities that may arise from events occurring on their property or as a result of their actions. This means that if someone is injured on their property or if they accidentally cause damage to someone else's property, the homeowner would have to pay for any legal claims or settlements out of their own pocket. Liability coverage is designed to protect homeowners from these kinds of financial burdens, so without it, they are exposed to the full risk of personal liability.

The other options do not accurately reflect the situation. Coverage is not automatically provided by law; homeowners must actively purchase liability coverage to be protected. Additionally, while it is possible to purchase coverage as an add-on, this does not negate the fact that without it, homeowners are left financially vulnerable. Lastly, not having liability coverage means that not all liabilities are insured, leaving the homeowner completely responsible for any claims or lawsuits that might arise.