Significance of Personal Liability Coverage for Renters

If you rent a home, room, or apartment, it’s essential to carry personal liability coverage to protect yourself against potential lawsuits. Your landlord’s insurance will only cover structural damages. It does not include the contents within your dwelling. Here are important facts about personal liability coverage and how it can help you.

Why Personal Liability Coverage Is a Must-have?

Personal liability insurance is needed when a third party claims that you are responsible for their injury or damage to property and asks for compensation. However, if your insurance provider thinks otherwise and denies compensation, you may face a lawsuit. It’s particularly important to carry liability coverage as it protects you from medical, repair or replacement, and litigation expenses.

Personal Liability Insurance Inclusions

  • Dog bites: Certain breeds of dogs, however, are excluded from this coverage. You must confirm with your insurer about your pet. Dog bites can be very serious, amounting to thousands of dollars worth of medical bills.
  • Slip-and-fall accidents: If someone slips and falls in your home and gets injured, your personal liability policy will cover the medical expenses.
  • Swimming pool accidents: If an accident occurs in the swimming pool at your rented home, you may be help responsible, which is why you should consider this coverage.
  • Damages caused by guests: This coverage will pay for damage caused by guests even while they were intoxicated.
  • Falling trees: If a large tree or its branches fall on a neighbor’s roof or yard, it can cause property damage and injuries. This coverage will save you from paying thousands of dollars out of your own pocket.
  • Worker injuries: It’s possible to get sued by someone who injures themself while working on your rental property. Your personal liability insurance takes care of such expenses.

Personal Liability Coverage Exclusions

Personal liability coverage only provides so much protection, and you need to purchase extensions to raise coverage limits or cover other risks. The policy won’t cover damage caused by vehicles, which can be covered by auto insurance. It also does not cover anything related to a business venture. Mishaps involving family members resulting in injury or property damage are also not covered.

How Much Liability Coverage Must I Have?

The amount of liability coverage you decide upon depends on multiple risk factors. Ask yourself what the chances are of accidents happening at your rental space. If you never invite guests over, it might not be a major concern. However, if you regularly invite guests to your place, it’s a good idea to carry at least $100,000 worth of liability coverage, which is typical of a renters insurance policy.

A renters insurance policy, on average, costs about $187 per year. Raising your liability limits doesn’t cost much. You may supplement your policy with umbrella coverage, which extends the coverage limits of an existing policy.

At Kneller Insurance Agency, we will help you get an appropriate personal liability insurance policy to fit your unique needs. Contact us today to get started.

Comments are closed.

Letter To Our Valued Clients Regarding COVID-19 Click Here