Renters Liability Insurance
Learn what liability coverage protects in your renters insurance and how much you might need below. Or, kick off your search with a quote from our friends at Liberty Mutual.
How renters liability insurance works
Liability insurance covers bodily injury to another person or property damage to another's belongings in your home. This coverage is included in a standard renters insurance policy, making it one of the four primary coverages protected by renters insurance.
How much personal liability insurance do you need as a renter? Read on to learn more about coverage limits, rates and more.
- Liability coverage in renters insurance protects against bodily injury and property damage to others on your rental property.
- Renters and personal liability insurance aren't legally required, but landlords may insist on it for lease agreements.
- Unlike most insurance, liability coverage doesn't require a deductible before a claim payout.
Liability insurance defined
Liability insurance pays the other party if an accident on your rental property causes bodily harm or damage to their property. This coverage protects you if you are found legally responsible for such an event—for instance, if your dog bites a neighbor, someone falls in your apartment, or a friend's computer is broken at your home. Liability coverage also pays for your defense costs in court if a lawsuit arises from an issue at your home.
The key difference is that personal liability insurance is part of a broader renters insurance policy. Renters insurance typically covers three main areas: personal property (protecting your belongings), additional living expenses (if you need to move out temporarily due to a covered event), and personal liability (covering legal or medical costs if you're found responsible for injury or property damage to someone else). So, while personal liability is included in renters insurance, the renters policy also offers other types of coverage.
Standard liability limits on a renter's policy may start at around $100,000, but if you're concerned about adequate coverage, you can increase your limits. Just remember that more coverage means a higher premium. Another option for additional liability coverage is to purchase an umbrella or excess liability policy.[1]
What liability insurance covers
Renters insurance consists of four important coverages: your liability, your personal property, your additional living expenses and medical payments to others.
The personal liability section of renters insurance policies only covers property damage and bodily injury to another person and their medical expenses — not you, members of your household or your property. Other parts of your insurance policy are meant to protect you: personal property coverage and additional living expenses.
Renters liability coverage is meant to pay for repairs to the property or medical bills for others up to the coverage limits. It may also cover legal fees if the incident requires legal mitigation. While most parts of insurance require that you pay a deductible before the coverage kicks in, this is generally not the case with liability claims.
Scenarios in which renters liability insurance provides protection
- Injuries and/or liabilities in your home:Â A visiting friend trips and breaks a bone.
- Damage to others’ property originating from your home: Your pipe bursts and causes water damage to the apartment below.
- Damage to other people’s property for which you (or a member of your household) is responsible: You break an expensive item at a neighbor’s home.
What renters liability doesn't coverÂ
Personal liability insurance under a renters policy does not cover you or your property. It also does not offer coverage in the event of damage caused by intentional act (this is true for all forms of insurance).
This type of coverage is meant to provide protection in the event of incidents occurring within your rental unit — accidents in common areas like sidewalks or lobbies will be covered by your landlord’s insurance. Liability protection will also not cover you if it was business-related: this would be covered by a commercial policy.
Auto accidents fall under car insurance, not renters coverage. In the case of liability related to a social event you host (such as a party), some states may find the host of the event partially responsible for any guest's resulting accidents or injuries. The guest’s auto insurance would primarily play a part in such a case, but your personal liability policy might have to kick in if you live in one of these states.
Is renters liability insurance required?Â
By law, renters insurance is not required to hold. However, many apartment complexes require that their tenants have a renters insurance policy in order to sign a lease. While a standard renters insurance policy is typically inexpensive and offers coverage for both you and others, you may also choose to purchase personal liability insurance alone. See more about this below.
Finding a liability-only policy is more challenging than a standard renter's insurance policy, but buying one is possible. Many insurance companies offer renters insurance and offer discounts when bundled with another line of insurance, like auto insurance, so it's generally easier to go with a company you already have auto insurance with.
But suppose you don't own a car or a home and strictly want higher liability coverage. In that case, you may find comprehensive personal liability coverage (CPL) by shopping around and talking with an independent agent or insurance brokerage.
How much renters liability coverage is necessary?
The amount of personal liability insurance you should carry depends on your specific situation. Policy limits usually start somewhere around $100,000 but can be increased. Those with significant assets will naturally need to increase their liability protection, but there are several reasons to increase your liability limits, including:
- Your net worth (the higher it is, the higher your limits should be)
- You have a pool or other attractive nuisance
- You play organized sports
- Your job puts you at risk of a liability claim (teacher, doctor, lawyer, contractor, etc.)
If you need additional personal liability coverage, reach out to your insurance company to inquire about higher limits or consider an umbrella policy.
There's no doubt that Americans love their pets; over 60 million U.S. households have a dog on the premises.[2]Â Â In 2023, there were over 19,000 dog bite claims in the U.S., up from around 17,000 the year before. The average cost per claim was around $58,000.[3] Although having a dog does not mean you'll have a liability claim, it's good to be prepared and have adequate coverage (that, hopefully, you'll never need!). If you have multiple dogs and often have guests on the property, it may be worth having higher liability limits.Â
Average renters insurance rates by liability coverage tier
How much you pay for renters insurance depends on how much coverage you have.
The higher the coverage, the higher your rate will be. Luckily, renters insurance is quite affordable even at the highest liability coverage tier.
| Coverage Limit | Average Annual Rate | |
|---|---|---|
| $100K | $246 | |
| $300K | $260 | |
| $500K | $269 |
Interested in a renters insurance policy or need more guidance? Give The Zebra Insurance Agency a call! Our friendly, licensed, and independent agents specialize in presenting insurance in black and white, empowering you to choose the best policy for your unique situation.
FAQs
Renters insurance. Insurance Information Insitute
U.S. Pet Ownership Statistics. AVMA
Spotlight on: dog bite liability. Insurance Information Insitute
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