What Is The Purpose Of Liability Coverage On A Renter’s Insurance Policy?

"We can help. Able Elite Team is a leading insurance brokerage in Toronto. Contact our renters’ insurance experts here for a free consultation."

Liability coverage on a renter’s insurance policy protects you - the tenant - against liability lawsuits for bodily injuries visitors may suffer while on your rented property. The policy may pay for both your legal fees and the financial settlement the court may award the injured party.

A typical circumstance where you may be sued for injuries a visitor sustains on your rented property is where the mailman or delivery person slips and falls on a wet floor and twists an ankle or breaks a leg.

To meet their medical costs and any related damages, they may choose to sue you directly. Such an event naturally triggers your policy’s liability coverage. Instead of paying for the financial cost out of pocket, your renter's insurance policy would pay out, saving you from an unbudgeted expense.

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Without liability coverage, your renter’s insurance policy would only cover the loss of your personal property in the event of a theft, fire, earthquake, flood, or some insured loss event at your rented dwelling.

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How Much Liability Coverage Do I Need for Renters Insurance?

Even though the importance of protecting your assets with renter’s insurance is clear to see, many tenants still go without it. Many are of the mistaken belief that their landlord’s homeowner’s insurance will cover their property and legal liability. To reiterate, it does not.

But even with those smart enough to recognize the necessity of protecting their personal property in their rented dwellings with renters insurance, the amount of liability coverage needed for a given policy is usually a murky area.

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Determining the amount of personal property coverage you need is fairly easy.

Often this entails completing an inventory of all the personal possessions you keep in your rented property and working out its combined value. The figure you come up with is a good measure of the amount of personal property coverage you need.

Working out how much liability coverage is not as straight forward. You simply cannot tell with any certainty what kind of injuries a person may suffer on your

property, nor the amount a court can grant for damages. You will need to ask your insurance broker or agent what a good benchmark is for your property and location.

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Ready to protect your property and financial security with a renter’s insurance policy?

Working out how much liability coverage is not as straight forward. You simply cannot tell with any certainty what kind of injuries a person may suffer on your property, nor the amount a court can grant for damages. You will need to ask your insurance broker or agent what a good benchmark is for your property and location.

If you host frequent parties at home where you entertain lots of guests, your liability exposure naturally rises. You should increase your liability coverage to avoid any coverage gaps.

We can help. Able Elite Team is a leading insurance brokerage in Toronto. Contact our renters’ insurance experts here for a free consultation.

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