What is personal liability coverage for?

For homeowners, this coverage applies if someone is injured or property is damaged and you are to blame. When choosing liability coverage for your home, auto, boat, personal watercraft, or RV, consider how much money you make and what you own. The level or limit of coverage should be high enough to protect all your assets if you are sued.   An umbrella policy can be purchased to extend even higher liability limits over all of your personal policies.