Understanding Renters Liability Insurance

Understanding Liability Insurance

Every day, you pose risks to others that are called liabilities. You don’t intentionally want to harm anyone or anything. However, there’s always a chance that an innocent mistake could harm someone else. That risk of mistakes is a liability. We all have them, and if you live in a rental home, you pose unique liabilities to others, including the landlord. That is why landlords usually require renters to carry this coverage.

With a general renters liability policy, you’ll have coverage for a variety of damage that your negligence might cause others who don’t live in the home. Coverage can help you not only pay for someone else’s losses, but also for your own legal bills in case they sue you. Therefore, this is important coverage for the renter, because it will protect your own wallet in case of claims.

Bodily Injury to Others

Most policies include bodily injury liability coverage. So, if a guest gets hurt on your property, this coverage can help them pay for their medical bills and related costs. For example, if a visitor trips on a broken sidewalk, this coverage could help them receive the assistance they need for their injuries. Many bodily injury liability policies can also apply to harm your pet causes to another person if they bite them.

Property Damage to Others

There is always a chance that you could cause an accident that damages someone else’s belongings. If you accidentally damage a houseguest’s possessions, for instance, this coverage can help you pay to replace the items. In many cases, policies can cover damage that occurs both on or off your rental property. So, if you go to a neighbor’s home, and break the person’s window, then your policy might help you pay for the damage.

Property Damage to the Home

In many cases, it is liability insurance that will pay for damage to the rental home’s structure. That is because the structure belongs to someone else, the landlord. However, the policy will likely only need to pay if the tenant is at-fault for the damage.

So, if you cause a fire while cooking dinner, your liability policy might pay to repair the damage to the structure. However, if a fire breaks out due to an undiagnosed wiring problem, it is the landlord’s property insurance that might help pay for the damage. Keep in mind, however, that your own renters insurance can pay for damage to your own belongings if you have possessions insurance.

Looking for renters insurance? Call All About Insurance at (817) 589-0006 for more information.

Also Read: Renters Insurance for Pet Liabilities