What is third-party liability coverage?

Third-party liability coverage protects the policyholder (first party) from claims made by others (third parties) when the policyholder is found legally liable, with the insurance company serving as the second party. For home insurance, third-party liability coverage includes compensation arising from household accidents - for example, if a burst pipe in your home damages your neighbor’s property, the insurance will cover the compensation costs you're liable for.

If you have opted for Pet Owner Third-party Liability coverage, this policy protects you in the event that your pet causes bodily injury to others or accidental damage to property. It covers claims related to your legal liability.

Please refer to the Policy Home Insurance Policy Provision for detailed coverage information.