There are two basic types of liability insurance that you may be required to purchase if you reside or drive in California. There are other specific types of liability insurance for business owners, landlords and other special situations, but the remainder of this article will focus on liability insurance for California homeowners and drivers. Liability insurance covers claims that are based on bodily injury or damage to property.
Liability Insurance for Bodily Injury Claims
In regard to California auto insurance, the law requires all drivers and vehicle owners to carry a minimum amount of bodily injury insurance to cover any physical injury they may cause in a motor vehicle accident. The minimum amounts required by the state are $15,000 for any injuries to one person and $30,000 for all parties that may have been injured in an accident. These are only minimum amounts and most drivers should consider higher limits to be more adequately protected.
California homeowners insurance is not mandated by the state, but any prudent homeowner should have liability insurance as part of their total homeowners insurance policy. Such coverage can protect you from claims and lawsuits by people who are injured while on your property.
Liability Insurance for Damage to Property
Car accidents can cause a lot of damage, and the state requires a minimum of $5,000 in insurance coverage for required repairs if you were the responsible party that caused the accident. Just like the liability coverage for bodily injury is artificially low, so, too, is the case with property damage.
Homeowners are not required to carry liability insurance, but in order to protect themselves from being exposed to a large, uncovered risk, it is wise for all homeowners to carry some liability insurance.