Obtaining liability insurance as part of a homeowner's insurance policy will:

Liability insurance as part of a homeowner's insurance policy specifically protects the homeowner against claims for negligence or bodily injury that may occur as a result of their actions or conditions on their property. This type of coverage is crucial because it helps to cover legal costs and any settlements or judgments that might arise if someone is injured on the property or if the homeowner's actions lead to damage to someone else's property.

For example, if a visitor trips and falls in the homeowner's yard and sustains an injury, liability insurance would provide protection against the potential lawsuit that could arise from that incident. It serves to safeguard homeowners from financial loss due to unexpected accidents involving third parties, making it a vital aspect of a comprehensive homeowners policy.

Additionally, while homeowners may choose to obtain liability insurance, it is not universally required by law for all homeowners; therefore, the statement regarding its mandatory nature doesn't hold true. Similarly, liability insurance does not limit coverage to property damage or personal property; it explicitly focuses on legal liabilities and bodily injuries.