What does 'personal injury liability' cover in homeowners insurance?

Personal injury liability in homeowners insurance primarily provides coverage for non-physical damages, such as defamation, slander, libel, and invasion of privacy. This aspect of liability insurance is designed to protect the policyholder from legal claims that stem from injury to someone's reputation or emotional distress, rather than from physical injuries.

While physical injuries to guests can be covered under bodily injury liability, personal injury liability specifically addresses harm that does not result in physical impairment but can lead to significant emotional or reputational damage. This type of coverage highlights the importance of protecting oneself from legal issues that can arise from everyday interactions and communications with others, further emphasizing the broader scope of liabilities that a homeowner might encounter.