Liability insurance is arguably the most important piece of your renters insurance policy.
That is because liability insurance has to do with protecting you if you are sued for causing bodily injury or property damages to another.
Let’s discuss what renters insurance liability coverage is all about:
Liability insurance protects you and your assets in the event your negligence results in damages to someone or something that doesn’t belong to you. Liability coverage is extremely important. If you are at fault in an accident, the law says you are responsible for the damages you cause. Even if you don’t have any money to pay for the damages, a judge can garnish your future wages, meaning you can either pay a little now or a lot later.
There are a few different types of liability coverage on a renters insurance policy:
Property Damage Liability Renters Insurance:
This coverage pays for damage that you do to someone else’s personal property. The person could be your landlord, your neighbor, or even someone that is in a different location.
For example, if you were cooking something in the kitchen, but walked away for a moment, and a kitchen fire caused significant damage to the apartment, you would be responsible for paying to repair the damaged kitchen. This would not be the landlord’s responsibility to repair! Since the fire was your fault you could be held liable and made to pay for the damages. That is where your renters insurance policy comes into play.
Bodily Injury Liability Renters Insurance:
This pays for injuries you cause to someone else. Let’s use that same kitchen fire as an example. If your neighbor had to go to the hospital because of smoke inhalation, and also missed a few weeks of work while they are recovering, you would be responsible for their medical payments and lost wages. Your renters insurance bodily injury liability protection will help pay those bills.
Minimum Liability On A Renters Insurance Policy:
Typically, the minimum liability coverage for a renters insurance policy is $100,000, which may seem like a lot, but liability adds up faster than you might think.
If you would like help completing your renters insurance policy review, check out our website or call one of our Effective Coverage insurance experts at (800) 892-4308.
We’d be happy to help you find out if you are getting the best price and the best coverage possible on your renters insurance.