What is personal liability insurance designed to protect against?

Personal liability insurance is specifically designed to protect individuals from claims made against them for personal injuries or property damage that they may inadvertently cause to others. This type of insurance provides coverage in situations where the policyholder is found legally responsible for accidents or incidents that result in bodily harm or damage to someone else's property.

For instance, if a guest is injured while visiting a homeowner and decides to file a lawsuit, personal liability insurance would cover legal fees and any settlements up to the policy limit. Similarly, if a policyholder accidentally damages a neighbor's property, this insurance would cover the costs associated with the damage.

The other options, while important aspects of insurance, do not fall under the scope of personal liability coverage. Insurance fraud claims, theft of personal belongings, and natural disasters affecting personal property pertain to different types of insurance policies, such as homeowners insurance or specific theft insurance policies.