A wet kitchen floor. The trampoline in the backyard. That balcony railing that's always been a little unsteady. The house or apartment you rent may be home sweet home, but it's also filled with potential dangers for any guests you have over. And if you want to be protected against claims against you for accidents or injuries you're responsible for, you'll need personal liability insurance.
As a tenant, personal liability insurance is a standard part of a renters insurance policy. It is a key element for protecting yourself because it covers damages, injuries and legal fees. If someone is hurt in your apartment, your renters personal liability coverage could cover the medical bills or legal expenses, if you need to go to court.
But how much coverage you have and the fine print for what exactly is covered can vary. So it's important to understand how this type of insurance works to ensure you're not overpaying or under-protected.
What is renters personal liability insurance?
Renters personal liability insurance is a specific type of liability insurance that covers certain out-of-pocket costs for the policyholder. This part of your renters insurance policy doesn't cover the damage or loss of your property. Instead, personal liability insurance protects you when you're legally responsible for injury to another person or damage to another person's property.
For example, if a friend brings a laptop to your apartment and you accidentally spill water on it, your personal liability insurance may cover the cost to repair or replace the computer. While renters insurance typically isn't mandated by law, it may be required as part of your rental agreement. And even if you aren't required to have personal liability insurance as a renter, it can be a cost-effective way to protect yourself in a worst-case scenario.
Renters Insurance vs. Personal Liability Renters Insurance
| Renters insurance | Renters personal liability |
|---|---|
| Covers your personal property for damage or loss | Covers damages to other people's property when you're legally responsible |
| Deductible applies to personal property claims | No deductible for personal liability claims |
| Provides reimbursement for additional expenses when you can't live in your apartment or home (for a covered reason) | May cover damage to the landlords property |
What does renters liability insurance cover?
Personal liability insurance for renters covers damages, losses and injuries to other people when you're at fault. And your fault can extend to damage or injury caused by pets or other relatives in your household, such as children.
Generally, tenant personal liability insurance covers:
- Other people's injuries: This includes when someone is injured in your apartment as well as injuries you (or a household relative) are responsible for accidentally causing.
- Damage to other people's property: This can include incidents such as a fire that started in your apartment and spread to a neighboring unit or a friend's belongings you accidentally damaged.
- Legal costs: If you are sued because of covered damages or injuries, the legal fees are covered.
As you consider what specific events are covered by your personal liability insurance, it's also important to be aware of your coverage limits. Most renters insurance policies include personal liability coverage limits starting at $100,000. So any claim or legal settlement amount that exceeds your coverage limit won't be covered by your insurance. If you feel that your liability coverage is insufficient, you can pay a higher premium to increase your coverage limit.
What's not covered by personal liability renters insurance?
It's important to understand the limitations and exclusions that typically come with personal liability insurance for renters. Usually, this type of coverage won't apply to:
- Business activity: If you run a business or side hustle from your apartment, your personal liability insurance won't cover damage or loss claims. You'll need a separate business or commercial policy to protect your business.
- Damage and injuries that were intentional: If you're upset with the neighbors and intentionally break their window, you'll be paying for repairs, and possibly legal fees, out of pocket.
- Personal injury or damages: Personal liability insurance doesn't cover injuries to yourself (or household members) or damage to your personal property. A standard renters insurance policy includes separate coverage for personal property. However, those claims are typically subject to different coverage limits and a deductible.
FAQs
Is renters liability insurance required?
Renters personal liability insurance is not required by law. However, your landlord may require a certain amount of renters personal liability insurance as part of the apartment lease.
Won't my landlord's insurance cover me?
Your landlord's insurance covers the landlord's property and liabilities, not yours. To cover your belongings and protect against claims for damage or injuries that you're responsible for, you'll need your own renter insurance and personal liability insurance.
Is personal liability the same as renters insurance?
Renters insurance usually includes personal liability coverage, but they are not the same. Personal liability insurance covers eligible damage and injuries that happen to other people or their property. Renters insurance covers personal liability, personal property and more.
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Bottom line
Personal liability insurance for renters protects tenants when they are responsible for damaging another person's property or for someone else's injuries. This coverage is part of a typical renters insurance policy. When you're shopping for personal liability insurance, make sure you have enough coverage for your needs, but that you're not paying for coverage you don't need.
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