The Importance of Liability Coverage in Renters Insurance

As a renter, you may be aware that your landlord’s insurance policy typically covers the exterior and common areas of your building. Additionally, you likely understand that you need your own renters insurance to financially protect your own belongings, including furniture, electronics, clothing and other contents of your unit. But are you also aware that renters insurance may provide coverage for personal liabilities? Understanding this facet of your policy can be critical.

What Is Personal Liability Coverage?

The liability coverage portion of a renters insurance policy can provide financial protection beyond your physical belongings and tangible assets. Regardless of how safe or cautious you may be, you may eventually be involved in accidents involving other parties. This part of your policy can list multiple insured parties, including yourself, family members, roommates and pets.

If you or another insured are deemed to be at fault for an incident in which others suffer bodily injuries or property damage and subsequent financial losses, liability coverage is key in limiting out-of-pocket consequences. Consider the following scenarios and how having personal liability coverage can make all the difference:

• You have guests over, and one of them slips on a wet floor in your kitchen. The resulting fall leads to serious injuries. In such situations, your insurance could help pay for medical bills and other financial losses.

• You accidentally start a fire while cooking that spreads to other units in your building. As the at-fault party for causing the blaze, you’d potentially be legally responsible for your neighbors’ and landlord’s losses. Fortunately, your insurance could assist in limiting out-of-pocket costs.

• You take your dog to the park, and it bites someone. The victim must seek medical attention. In such situations, you could be sued or forced to pay for the injured party’s health care costs, but the personal liability coverage in your renters insurance could offset such losses.

We’re Here to Help

At Active Insurance Agency in Ann Arbor, Michigan, we understand the ins and outs of renters insurance. Contact us today to learn more or to compare quotes for personalized coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.