In the first entry, we have discussed the first two areas covered by the basic homeowners insurance on the previous post and now let us proceed to the next two. Liability protection is protection from any lawsuits filed against you and your family members that results in bodily injury or property damage. It is the area where most experts say the safest amount of coverage would be for around 300,000 but basic policies go for as low as 100,000. Some people even go for higher rates into the millions just to be sure. It can even cover damage caused by your family pet if it so stipulates.