The amount of personal liability coverage in a policy is calculated based on any factors that increase the amount of risk in the home. A typical policy includes up to $1 million in coverage, says Thomas, although “people can choose to increase their liability limit if they’re worried about a lawsuit as a result of something on their property that may cause concern.”   For example, a ceramicist who operates a kiln on their property may have a higher liability limit due to the increased fire risk caused by firing clay at extremely high temperatures. Other factors that might increase the limit include a pool or a hot tub. Some policies will offer up to $10 million in personal umbrella coverage.   Generally, the size of a personal liability settlement will depend on the severity of damage. An accident that leads to chronic pain and permanent disability might go all the way into the multi millions. According to De Rose Lawyers, a client who sustained traumatic neck and spinal cord injuries after slipping and hitting his head on a sailboat, received a $2.75 million settlement. However, the amount will vary based on the facts of the individual case.   “It’s really important when you are purchasing a home, tenant or condo policy that you explain everything that happens in your home to an insurance professional,” says Thomas. “What you don’t want is for something to happen and you find out you have no coverage because the insurance company didn’t know.”