What type of expenses does 'Personal Liability' cover under a Homeowner's policy?

Personal Liability coverage in a Homeowner's policy is designed to protect the insured against financial losses due to claims or lawsuits for injuries or damages that the insured may inadvertently cause to others. This coverage specifically includes medical expenses for guests who may be injured on the insured's property, addressing situations such as a visitor slipping and falling, or getting hurt due to activities taking place on the property. It ensures that the policyholder is able to assist with the medical costs that arise from such incidents, which can help mitigate the risk of legal action or further financial burden.

Other choices do not fall under the Personal Liability coverage. The cost of home repairs is typically covered under a property part of a homeowner’s insurance policy rather than liability. Payments for stolen items generally pertain to personal property coverage, which protects the insured's belongings. Lastly, utility bills are regular expenses incurred by the homeowner and are not related to liability or insurance coverage at all. This highlights the unique role Personal Liability coverage plays in protecting homeowners from potential financial repercussions related to injury claims.