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Secure Yourself with Renters Liability Insurance

Author Gertrude Brogi

Posted Feb 20, 2023

Reads 7.3K

Renters liability insurance is a kind of coverage that provides protection from legal costs and other fees associated with unexpected incidents. It provides peace of mind to those renting by protecting them from the potential financial strain of having to pay high legal fees in the event that an incident occurs in their home or on the property they are renting, such as dog bites or other accidents.

Renters liability insurance isn’t mandated by any governmental body, but people expect it to be provided for them when they are renting a property. Without renters liability insurance, a renter may find themselves facing extremely high legal fees, which can add up quickly and make it very difficult for someone who lives on a tight budget to pay. In some cases, if someone doesn’t have renters liability insurance, they may end up owing tens of thousands of dollars in legal fees if they are faced with a lawsuit.

For this reason - and many others - it is important for renters to consider taking out renters liability insurance. Doing so provides protection from one of the most expensive consequences of being sued: covering the cost of legal fees related to an incident that happened in your home or on your rental property.

Uncovering the Protection of Renters Liability Insurance

Renters liability insurance is a type of renters policy that provides protection in the event of an incident resulting in someone else's property damage or injury. Called personal liability, this coverage can be found in your policy documents here's a closer look at what it covers.

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Imagine you're playing softball with your neighbors in front of your rental house and your 12-year-old daughter hits a home run – but not before it goes through the neighbor's kitchen window. In response, the neighbor sues you and the court finds you liable for the broken window. Fortunately, renters liability coverage can help protect you from having to pay for damages up to your coverage limit as well as legal fees if needed.

Additionally, if you choose to purchase personal liability coverage, most standard renters insurance policies will generally include personal property coverage, hotel bills if your home undergoes covered repairs and reimbursement for additional living expenses due to displacement caused by a claim on your renters insurance policy. Personal property coverage protects against theft or damages caused by fire or storms and liability claims may help cover medical expenses associated with dog bites or other incidents that occur on or off your premises. Assurant even offers a liability-only policy for tenants living in select partner properties – however, this policy won't cover any of your personal belongings so make sure you have a renters policy in place too!

Who Needs Renters Liability Insurance?

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Renters liability insurance is critical for those who are renting their home or apartment, no matter their state law. Unexpected lawsuits can arise if someone is injured while on the rental property, whether it's a party including friends, guests, workers or delivery people. Without renters liability insurance coverage, these risks can become costly and even devastating.

What Doesn’t Personal Liability Insurance Cover for Renters?

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Personal liability coverage, which is a part of renters insurance policies, does not cover damage to the property you are renting. It is important to note that when it comes to renters insurance, it only covers your personal property and the contents section of your policy. Therefore, if you cause damage to the property you are renting, such as breaking a window or denting a wall, the personal liability portion of your renters insurance policy will not cover this.

Personal liability insurance for renters also won't cover the following:

Renters liability insurance offers a great way to protect yourself financially if you're renting a home or other property. However, it won't cover all kinds of incidents, and understanding what it does and doesn't include is essential for making sure you have the coverage that suits your needs. Personal liability insurance for renters won't cover common areas like parking lots or lobbies, nor will it cover incidents involving the leasing office or landlord insurance policy. Car accidents are covered by your car insurance policy and not by renters insurance, so make sure to check with your policy provider. Renters insurance also won't cover damage to personal belongings such as furniture or clothing, although some policies may provide contents coverage for such items. Business liability claims are generally excluded from renters insurance policies and should be covered by business liability insurance instead. Renters insurance typically doesn't cover broken, stolen or damaged property that is used for business purposes in a home office setting, nor will it cover lawsuits related to intentional acts or malicious acts of a tenant living in the rental unit. For these situations, tenants may want to consider purchasing independent liability coverage from an independent insurance agent as part of their renters insurance policy. Additionally, most renters' policies don't include personal liability coverage for legal expenses related to defending against claims made against them in court; however this can usually be added on as part of the personal liability section of a renters’ policy.

Uncovering What Renter's Liability Insurance Protects

Renter's liability insurance is a key thing to consider when moving into your new rental. This type of personal liability insurance provides coverage for damages that you, as the renter, are found liable for. In 2021 data from State Farm showed that the average dog-related injury claim was $44,760 and according to the Insurance Information Institute, renters should learn more about their specific renters liability insurance policy as not all insurers exclude dog bites and other incidents.

Liability related incidents can range from a visiting friend tripping over an extension cord in your apartment and breaking their arm, or a grease fire in your kitchen damaging the inside of your landlord's property - you're responsible for those damages and medical expenses if you're found liable. Additionally, if a child accidentally breaks a priceless vase at your friend's house or someone gets injured during social events like house parties, your guests may not have auto liability coverage, so you may be held liable if found guilty.

Cheap renters insurance can cover you for these liability related mishaps. With minimal costs that vary based on where you live, this type of insurance will give you peace of mind knowing that if an incident occurs in or out of your rental home injuring passengers or damaging people's property, you'll have coverage to help pay for any damages.

What Is the Difference Between Renters Insurance and Personal Liability?

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Renters insurance and personal liability insurance are two very different types of coverage. Renters insurance refers to an insurance policy that covers losses or damages to a tenant's personal property due to theft, fire, vandalism and other disasters. Personal liability insurance refers to a policy that provides coverage for the tenant if they are held responsible for another person's injury or property damage. The coverage included in each policy varies, so it is important to understand what is included in your renters insurance policy and any additional personal liability insurance you may need.

Frequently Asked Questions

What does renters insurance covers and why you need it?

Renters insurance covers a wide range of personal property, including theft or damage to your possessions, and liability protection. It is an affordable way to protect yourself and your belongings — so you can sleep soundly knowing you're covered.

Does homeowners insurance cover personal liability?

Yes, homeowners insurance generally covers personal liability for accidents on your property, as well as off-premises incidents such as libel and slander. Learn more about how homeowners insurance can help protect you and your family.

Who can file liability claim on renters insurance?

Anyone who lives in the rental property and is named on the renters insurance policy can file a liability claim. To learn more, read our article on how to file a liability claim on renters insurance.

Should my tenant carry renters insurance?

Yes, tenants should definitely consider carrying renters insurance. Not only does it provide extra security in the event of theft or damage, but it can also offer financial protection against a variety of other risks. Learn more about how renters insurance can protect you and your property.

What does personal liability mean in homeowners' insurance?

Personal liability in homeowners' insurance provides coverage for bodily injury or property damage caused by you, your family members, or pets to others. It can also cover costs associated with a lawsuit if you are sued after an accident. Learn more about how personal liability coverage can protect you and your family.

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Gertrude Brogi

Writer at CGAA

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Gertrude Brogi is an experienced article author with over 10 years of writing experience. She has a knack for crafting captivating and thought-provoking pieces that leave readers enthralled. Gertrude is passionate about her work and always strives to offer unique perspectives on common topics.

She enjoys researching the latest trends and topics in order to provide her readers with the most up to date information. Her areas of expertise range from business, lifestyle and fashion to technology, health and wellness. Her articles have been featured in numerous online publications, and she is also an avid public speaker who loves sharing her knowledge with others.

As a woman, Gertrude strives to empower other women through her work by highlighting their successes and stories while inspiring them to reach new heights of success.

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