A: Liability claims can arise out of many normal conditions of day to day life. Your neighbor walking their dog on their sidewalk in front of your home, your friend comes over for a dinner party, and things as crazy as your kids playing in a youth sporting event. All of these scenarios could create a situation where someone may try to look to you for help with medical bills or damages due to their injury. Your liability coverage will also pay for property damage caused by anyone that qualifies as an insured under the policy and where that party is liable.