Personal liability coverage is an important part of most rental insurance policies and is designed to protect you and your finances if you or a member of your household are responsible for another person’s injuries or property damage. Whether you are renting a house or an apartment, it’s important to understand how this type of insurance works, what it covers, and if you need to purchase coverage for the duration of your tenancy.
What Is Personal Liability Insurance for Renters?
If you are found legally responsible for damage to another person’s property or injuries to another person, renters personal liability insurance can cover their medical bills, their property damage, or your legal fees (if you need to go to court).
This part of your renters insurance plan does not cover damage to your own property or injuries suffered by members of your household. Instead, it is designed to protect you if someone is hurt or their property is damaged in your rented apartment or house.
Consider these examples:
- You spill water on a guest’s laptop, causing damage to its appearance and functionality
- Your guest slips and falls on your wet kitchen floor and needs medical care
- A fire started in your apartment kitchen and spread to the neighboring unit
- Your guest trips and falls down your staircase and must go to the hospital
- Your dog bites a passing jogger and they need medical care
- A neighborhood child is injured while swimming in your pool
- Your child hits a baseball that accidentally breaks your neighbor’s window
Renters personal liability insurance may help protect you in situations like these, such as paying for medical bills, property damage, and legal costs, up to the limits of your policy.
What Does Renters Personal Liability Insurance Cover?
Every renters personal liability insurance policy varies, but this type of insurance generally covers damages, injuries, and legal fees caused by you, your pets, or other relatives in your household, including children.
Other People’s Injuries
Whether someone in your household accidentally injures a guest or a visitor is hurt while on your rented property, renters personal liability insurance will typically cover their medical bills.
Damage to Other People’s Property
When a guest’s property is accidentally damaged by you, your pets, your children, or other household relatives, your personal liability coverage of your renters insurance policy will help pay for the repairs or for a replacement.
If you are sued because of covered injuries or damages, your renters personal liability insurance will cover the legal fees.
What Is Not Covered by Renters Personal Liability Insurance?
Some damage and injuries are excluded from personal liability insurance policies for renters. Typically, renters personal liability insurance will not apply in the following situations.
If you run a business or operate a side hustle from your rented property, your renters personal liability coverage will not apply to any damages or injuries that are related to your professional activities. You will need to purchase a separate business or commercial policy to protect yourself from business-related damages.
Damages or injuries caused by a car accident are excluded from renters personal liability insurance coverage. However, your auto insurance policy may be able to protect you.
Personal Injuries or Damages
Bodily injuries to yourself, your pets, or your household members are not covered by renters personal liability insurance. Damage to personal property is also excluded from personal liability policies, although standard renters insurance includes coverage for personal property damage.
Intentional harm, damage, or injuries are not included in renters personal liability coverage.
Who Should Purchase Renters Personal Liability Insurance?
Tenants generally are not required by law to purchase renters personal liability insurance. However, some landlords require a certain amount of renters insurance coverage as part of the rental agreement.
Regardless, renters personal liability insurance is a cost-effective way to protect you from potentially significant fees, so we highly recommend all renters purchase an adequate amount of renters personal liability insurance.
Contact Melton-McFadden for Renters Personal Liability Insurance Coverage in Michigan
At Melton-McFadden, our experienced insurance professionals are ready to help you develop a renters insurance policy that protects both your property and your finances. We are here to guide you through the process of identifying areas of risk, finding gaps in your current coverage, and creating a solution that works best for you, your property, and your family.
Whether you are interested in purchasing a renters insurance policy or securing additional personal liability insurance, our team is prepared to answer your questions. Contact us today or request a free quote to get started.