One less understood type of coverage leads to people asking what is liability coverage on renters insurance. It’s important to understand liability on renters insurance to know how you’re protected, but it’s also important to understand because landlords require liability insurance and that’s a major underlying reason for the ever-expanding mandate that residents have renters insurance. We’ve enlisted Eric from Effective Coverage to tell you a little more about what liability coverage on renters insurance is, and how much of it you need.
What Is Liability Coverage On Renters Insurance?
Liability coverage on renters insurance is what protects you if you cause damages to someone else through your negligence. Broadly, damages can be bodily injury or property damage. Your liability coverage on renters insurance pays for those damages to be fixed, up to the policy limit.
You could easily bump into someone on the street with your hot coffee and cause them injury. You could just as easily fall in someone’s home and damage the wall trying to catch yourself. In both instances, the person needs to be made whole. Liability takes care of this.
Renters insurance liability coverage also pays to defend a liability claim or suit that’s brought against you. You don’t want to spend $20,000 defending against a $10,000 claim, do you? The insurance provider has a staff of attorneys who do nothing but defend and settle claims brought against their insureds.
Anyone can file a claim on renters insurance liability coverage as long as they’re not a party to the policy. Liability is a third party coverage, so anyone that suffers damages as a result of your negligent action would be able to make a claim. That would include your landlord, if you accidentally started a fire, for instance. That’s one of the number one reasons that tenants are required to have renters insurance, to make sure they can make good on damages they cause to the property.