Your financial resilience to encounter unplanned expenses or accidents largely defines your economic stability. If you are a tenant, your landlord might already have requested you to get a renter’s insurance.
Do you know that a part of this insurance coverage, known as ‘personal liability for renters, ’ goes much beyond protecting your belongings? As a tenant, it’s logical to get a renter’s insurance coverage since your homeowner’s insurance will cover only the structure of the building. However, how much coverage do you need as personal liability being a tenant?
In this article, we will comprehensively discuss, “what is personal liability insurance for renters?”.
When you consult reputed insurance brokers like Surex, the professionals will recommend affordable tenant insurance policies. Depending on your risk profile, they would also recommend the personal liability coverage that you need.
What is personal liability insurance for renters in Canada?
Personal liability insurance on a renter’s policy is a part of the larger policy that helps you financially to deal with lawsuits. Suppose you accidentally damage the structure of the building or someone visiting your home sustains an injury. If the matter escalates to the court, you need to pay legal costs to handle the lawsuits. With personal liability insurance for tenants, you need not shell out these expenses from your pocket.
This coverage will financially secure you, as you get compensated for the settlement and legal expenses after injuring someone. Like every insurance policy, the compensation is capped. So, it’s wise to determine the amount of coverage you might need. It makes sense to consult your insurance broker to find the maximum coverage you need and, accordingly, get your policy customized.
Let’s take an instance to understand this matter better. Suppose your colleagues are having a party at your home, and someone slips down the stairs and sustains an injury. If there’s a medical surgery involved, costs can be pretty high. Your renters liability insurance will protect you against the lawsuits brought against you in this case. The rest of the provisions of your tenant insurance policy will cover the medical expenses.
When do you need renters liability insurance?
The moment you move into a rented property, you will need liability insurance. This type of insurance coverage provides tenants with financial support if the person is accused of negligence following another person sustaining injuries. Besides, you can fight lawsuits with better financial resilience if your landlord sues you for damaging the property.
Renters liability insurance may prove to be handy in situations that can financially cripple you. For instance, if your pet dog bites someone, the victim might file a lawsuit against you. This policy can secure you financially to deal with legal expenses. Even if the lawsuit’s verdict isn’t in your favor, you need not pay for the litigation expenses or any other damage.
Remember, medical treatment and litigation costs can be significantly high. So, it makes sense to have adequate coverage for personal liability.
How does renters’ liability insurance work?
Personal liability cover of your renter’s insurance pays for the property damage expenses or medical bills of another person if you are at fault. Besides, once you get the policy, it will help you settle legal charges. So, if you are still wondering “what is liability insurance for renters?” and what it covers, have a look at the benefits.
1. Dog bites
Tenants must often file personal liability claims if their pet dog bites someone. Remember, the treatment for dog bites can be quite expensive, around $35,000 or even more. Given that insurers exclude some ferocious breeds from the coverage. If you aren’t aware of whether the coverage applies to your dog breed, make sure to verify the same from brokers. Failure to do so might deprive you of the insurance benefits.
2. Falls and injuries
Falling down the staircases or slipping on the floor can lead to bleeding or even dislocated bones. If this happens due to your negligence, your guests might file a lawsuit against you. In these situations, your personal liability for renters insurance policy will secure you financially.
3. Falling trees
Suppose you have a gathering in your rented property. A tree or a branch lands on someone, leading to injury and, eventually, a lawsuit. Now, if the investigation reveals that the tree had been rotting before your eyes and you neglected the same, it might lead to a lawsuit.
4. Swimming pools
Accidental drownings and injuries are common if you rent a swimming pool along with your property. These incidents can turn nasty if the victim or their family members pursue the legal path. Kids often get drawn to swimming pools, rendering you liable for accidents. If you leave the pool unsupervised, you may find yourself in legal trouble.
5. Injured labors
In case you have any ongoing renovation or repair work in your rented property, unforeseen hazards might befall the workers. Twisting of ankles in your courtyard, a falling chunk of concrete leading to bodily injury, or any other type of injury can lead to a lawsuit. At times, injuries might originate from violence by intoxicated guests. Lawsuits can also arise due to slander, libel, fires, or leaks.
Expenses not covered by personal liability insurance for renters
The benefits of personal liability insurance for renters are not applicable for the following expenses.
- Damage to the property if you own it
- Injuries or damages resulting from car accidents
- Your bodily injuries or the associated medical expenses
- Insurance claims related to business
- Intentional damage or harm, if revealed
Now that you know what is personal liability insurance for renters, it’s time to discuss your coverage limit. Top insurance companies provide you with standard packages where you can choose the desired limit. Typically, this ranges from $100,000 to $500,000. Your insurance broker can recommend the right policy based on your risk profile.
Working with top insurance brokers, you can obtain multiple quotes instantly from dozens of insurers. It would be a logical decision to reach out to professionals to find affordable renter’s insurance policies with a provision for personal liability.
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