What does Coverage L in a homeowner's policy provide?

Coverage L in a homeowner's policy provides personal liability coverage. This coverage is designed to protect the policyholder against financial loss if they are held legally responsible for bodily injury or property damage to another person. It typically includes legal defense costs as well, which means if a lawsuit arises from an injury or damage caused by the insured or their property, the policy would cover the costs associated with legal defense and any settlement or judgment up to the policy limits.

Understanding personal liability coverage is vital for homeowners as it safeguards their assets in situations where they could be sued, providing peace of mind and financial protection. The other options do not pertain specifically to personal liability; they focus on different aspects of coverage, such as property itself or contents within the home, while Coverage L specifically addresses the liability aspect associated with owning a home and related activities.