Personal liability is a type of coverage the best renters insurance companies offer on your policy that helps protect you if someone gets hurt in your apartment or if you get sued.
Liability coverage is a standard part of renters insurance and is coupled with personal property and additional living expenses. Here’s what to know about renters insurance and personal liability coverage.
What Is Personal Liability Insurance for Renters?
Renters liability insurance is part of renters insurance coverage that pays for property damage and injuries accidentally caused to others who may be visiting the property you’re renting. It could also pay for costs if you are sued because of an accident, such as legal fees, judgments and settlements.
For example, let’s say you invite a friend over to your apartment. As they’re walking in the door, they trip and break an arm. If they decide to sue you for damages, the personal liability coverage on your renters insurance can cover your legal fees and pay for the medical treatments related to the accident.
Liability cover doesn’t require that you pay a deductible for a claim, which is unlike other parts of your renters insurance policy, such as personal property.
Related: Pet Liability Insurance for Renters
What Does Renters Liability Insurance Cover?
Renters liability insurance typically covers the following scenarios, up to the policy’s liability limit:
- Injury to someone else: Maybe your dog bit someone in your apartment or at a park.You are likely liable for the damages.
- Damage to someone else’s property: If your child is playing baseball and accidentally breaks the neighbor’s window with an unfortunate foul ball, your liability insurance can pay to fix the window.
- Legal fee: Renters liability insurance will also pay your legal fees related to lawsuits over issues that are covered by your policy.
Because costs like these can add up fast, it’s important to have sufficient liability insurance. Talk to your insurance agent about what coverage limit would be suitable for you.
What Is Not Covered By Renters Liability Insurance?
Renters liability insurance doesn’t 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. That’s because the accident happened in an area where the landlord should be responsible.
- Liability related to your business: In most cases, renters insurance will only cover personal liability claims. If someone sues you over an issue related to your business based out of your home or apartment, you may need a business insurance policy for coverage.
- Damage to your belongings: Renters liability insurance only covers damage to other people’s property. If your dog chews up your couch, for instance, don’t expect your renters insurance policy to come to the rescue.
- Damage that was intentionally committed: If you intentionally caused injuries or property damage to others, your renters liability insurance will most likely not cover it.
Renters Insurance vs. Personal Liability Insurance vs. Tenants Liability Insurance
Insurance companies typically offer personal liability insurance as part of a renters or homeowners insurance policy. Sometimes referred to as tenants liability insurance, personal liability renters insurance is only one aspect of coverage you’ll get when you purchase renters insurance.
What’s the difference between renters insurance and personal liability insurance?
How Much Renters Liability Insurance Do I Need?
To determine how much renters liability insurance you need, consider what you risk losing in a lawsuit.
Many insurance companies offer a standard amount for renters liability insurance, such as $100,000. But you can increase that amount and/or purchase an umbrella insurance policy for even higher coverage.
How Much Does Personal Liability Insurance for Renters Cost?
Renters insurance costs an average of $173 per year for $15,000 of personal property coverage. That also includes coverage for personal 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
- Policy deductible
- Whether you own a dog
Does My Landlord’s Insurance Policy Protect Me?
Rental property insurance, also known as landlord insurance, can pay for damage or injury when the landlord is legally liable. For example, if your guest trips and falls on the steps because of loose boards, your landlord’s insurance policy should kick in. However, if your dog bit your guest’s leg, a landlord’s policy would not cover the problem.
A landlord’s insurance policy also doesn’t cover theft or damage to your personal property.
