The type of liability insurance you needs depends on the specific insurance policy you have and the laws in your state.

Mentioned earlier, the vast majority of states require liability coverage to legally drive on the road. Typically, liability coverage on your auto policy breaks down into two types: bodily injury liability coverage and property damage liability coverage. Respectively, they protect you if you’re at fault in an accident and are required to pay someone else’s medical bills or property repairs.

In other cases, like for home or renters insurance, liability may not be required by law. But if you’re taking out a mortgage, your lender will most likely require you to purchase home insurance, which includes personal liability coverage. Sometimes landlords will require tenants to purchase a renters policy, which also include personal liability. Again, these are meant to cover you if you’re found at fault for accidental injuries on your property or if you damage someone else’s property (not while behind the wheel, however – that’s where auto insurance would come in).

Landlord insurance also typically comes with liability coverage. In much the same way as the other property protections mentioned, liability on a landlord policy can help cover you if bodily injury or property damage arises out of ownership or maintenance of the property.