Lindsay, who has renters insurance in Arlington, TX, wrote in with today’s question:
Who can file a liability claim on renters insurance? Do I have to start the process, or can the claimant?
Who Can File A Liability Claim On Renters Insurance?
Who can file a liability claim on renters insurance? Is it something you start, or does the aggreived party begin the process? How does it work? What if someone files a liability claim on my renters insurance?
Great question, Lindsay! It’s a pretty important question to know the answer to should something happen.
Who Can File A Liability Claim On Renters Insurance?
First, let’s take a look at what a liability claim is before we even think about who can file one. Renters insurance liability protects you if you cause bodily injury or property damage to someone else. That someone else doesn’t have to be an actual person. Claimants can be LLCs, corporations, and property managers. So if you negligently start a fire in your apartment, which results in a neighbor going to the hospital and damage to another neighbor’s personal property, both of them have potential claims against you.
Remember that the definition of “person” also includes corporations like the property management company you rent from. So they have a potential claim, as do the actual people whom you caused injury or property damage to. Now that we’ve established what a liability claim is and some examples, let’s take a look at who can file a liability claim on renters insurance.
Generally speaking, anyone who is not a party to the policy can file a liability claim on renters insurance. “Anyone who is not a party to the policy” is a pretty broad concept, so let’s narrow it down some. While anyone meeting the above definition could file a liability claim for any perceived wrong or tort, he likely wouldn’t get very far. Small personal property claims are often paid out by an insurance carrier because it costs less to write a check for $500 than to investigate fully and pursue the truth of the claim. On the other hand, liability claims can extend much more broadly and be much more expensive. You can bet that your insurance carrier will reject out of hand most frivolous liability claims. They are expensive, first of all, and they have potential to grow significantly once liability has been admitted.
Who Can File A Liability Claim On Renters Insurance?
Who can file a liability claim on renters insurance is very different from who can succeed in a liability claim on renters insurance. Never forget that your insurance carrier has a team of attorneys on staff and on retainer to handle matters like this. It’s their job to sort out liability where it exists and to reject liability claims where there is no validity. The insurance company must also defend such things in court if it comes to that. You have a duty to notify your insurance agent or carrier of any potential claim that you have or should have knowledge of. From that point, your insurance carrier takes over and your duty changes to assisting them in defending the claim and providing the information they need in order to do so effectively.
The other thing to keep in mind is that someone filing a liability claim generally cannot be a party to the policy. The most common time this comes into play is when there is liability incurred between two named insureds on the same policy, such as partners who reside together. But it can also be an issue when the property owner is named as additional insured. Why shouldn’t the property owner or manager be named as additional insured? We’ve written on additional insured vs additional interest before, and it’s worth a read.
You should know who can file a liability claim on renters insurance and what your policy covers. Working with experts like those at Effective Coverage will help you have the knowledge you need. Call Effective Coverage (800) 892-4308 for more information on who can file a liability claim on renters insurance or for a free quote!