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Liability is a type of coverage in your tenant’s insurance policy that protects you if someone gets hurt in your apartment or you get sued.
Liability coverage is an integral part of renters insurance and is associated with personal property and additional living expenses. Here’s what you need to know about renters insurance and personal liability.
What is renters liability insurance?
Tenants liability insurance is part of Tenant insurance coverage that covers property damage and injury accidentally caused to other people who may visit the property you are renting. It could also pay for costs if you are sued due to an accident, such as legal fees, judgments and settlements.
For example, let’s say you invite a friend to your house. As they walk through the door, they trip and break an arm. If they decide to sue you for damages, your tenant’s insurance liability coverage may cover your legal fees and pay for medical treatment related to the accident.
Liability coverage does not require you to pay a deductible for a claim, unlike other parts of your renters insurance policy, such as personal property.
What does tenant liability insurance cover?
Renters’ liability insurance generally covers the following scenarios, up to the policy’s liability limit:
- Injury to someone else: Maybe your dog bit someone in your apartment or in a park. You are probably responsible for the damages.
- Damage to property of others: If your child is playing baseball and accidentally breaks the neighbor’s window with an unfortunate foul ball, your liability insurance may pay to fix the window.
- Legal fees: Renters liability insurance will also pay for your legal costs related to lawsuits regarding issues covered by your policy.
Since such costs can add up quickly, it is important to have sufficient liability insurance. Talk to your insurance agent about the limit of coverage that would be right for you.
What is not covered by tenant liability insurance?
Renters liability insurance does not cover the following:
- Injuries and damage in common areas: If you live in an apartment complex and your guest is injured in a common area, your landlord’s liability insurance will most likely provide coverage. This is because the accident happened in an area where the owner should be responsible.
- Responsibility related to your business: In most cases, renters insurance will only cover liability claims. If someone is suing you for a business-related problem outside of your home or apartment, you may need a business insurance hedging policy.
- Damage to your property: Tenant liability insurance only covers damage to other people’s property. If your dog chews on your couch, for example, don’t expect your tenant’s insurance policy to come to the rescue.
- Intentionally committed damage: If you intentionally caused injury or property damage to others, your tenant’s liability insurance probably won’t cover it.
Tenants Insurance vs Liability Insurance vs Tenants Liability Insurance
Insurance companies usually offer liability insurance as part of a tenant or homeowner’s insurance policy. Sometimes called renters liability insurance, renters liability insurance is just one aspect of the coverage you will get when you purchase renters insurance.
What is the difference between tenant insurance and liability insurance?
How Much Renters Liability Insurance Do I Need?
To determine how much renters liability insurance you need, consider what you stand to lose in a lawsuit.
Many insurance companies offer a standard amount for renters liability insurance, such as $100,000. But you can increase this amount and/or buy a umbrella insurance policy for even higher coverage.
How much does tenant liability insurance cost?
Renters insurance costs an average of $173 per year for $15,000 of personal property coverage. This also includes coverage for third party liability and additional living expenses.
Your cost for renters insurance could be higher or lower depending on several factors, including:
- Your location
- Type of residence
- Claims history
- Coverage amount
- police deductible
- Whether you own a dog
Does my landlord’s insurance policy protect me?
Rental property insurancealso known as owner insurancecan pay damage or injury when the owner is legally responsible. For example, if your guest trips and falls on the steps due to loose boards, your landlord’s insurance policy should kick in. However, if your dog bit your guest’s leg, the landlord’s policy would not cover the problem.
A homeowner’s insurance policy also does not cover theft or damage to your personal property.
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Renters Liability Insurance FAQs
Is civil liability the same as tenant insurance?
Personal responsibility is part of a Tenant insurance Politics. Renters insurance includes coverage for your personal property, liability insurance, and additional coverage for living expenses when you cannot live in your rental unit due to damage.
Do I need more liability coverage if I have a pet?
Having a dog can increase your risk of insurance claims against you, so it is wise to carry sufficient liability insurance.
The average cost of a dog bite insurance claim in the United States in 2021 was around $49,000 and is trending upwards, according to the Insurance Information Institute. If you have a dog that causes injury or damage to someone and you are legally liable, you will be required to pay for anything over your tenant’s insurance liability coverage limit.
Under some insurance policies, dogs are excluded from liability coverage. In these cases, you would be 100% responsible for the injuries caused by your dog.
Why would anyone want to have tenant insurance if the landlord of their building has insurance?
Tenant Insurance Projects your own businesspays for additional living expenses if you have to temporarily live elsewhere and provides liability coverage if you are responsible for another person’s injury or property damage.
A building owner owner insurance will not help you with these problems. A homeowner’s insurance policy covers the building, common areas, and provides liability if the damage or injury is the fault of the homeowner.