Many renters mistakenly think that they are covered under the homeowner’s insurance policy for liability. Or, they think that they are covered under the large insurance policy of an apartment complex. But, this is simply not true. Renters insurance offers you protection from liability should you be named as a defendant in a lawsuit.

What types of liability does renters insurance protect you from? Renters insurance protects you exactly the same way that a home insurance policy would protect a homeowner. Any event that takes place inside the home that you are renting or outside in any lawn space that is uniquely yours is covered by the insurance. What if you had a dog that you didn’t keep chained up and it bit the gardener? What if you did not sweep off the snow on your front door stoop and the mail carrier slipped and fell? You could be held liable for your negligence. You open yourself up to lawsuits because of it. You are protected with liability coverage when you have renters insurance. The policy will provide you with protection up to your liability coverage limit assuming that the accident was not because of gross negligence. In the case of gross negligence, when you willfully ignore something that could cause an injury, you could be held liable without the benefit of any liability insurance.

Most renters insurance policies have $100,000 worth of liability coverage. For many renters just starting out without many assets, that may be an adequate amount of coverage. But, you may want to consider even more liability coverage if you have a lot of assets, have a large income earning potential, or think that potential accidents could be quite expensive in the future. The cost of healthcare can quickly dwarf most liability limits if someone is seriously hurt on the property you are renting. You should protect yourself and your assets with the liability coverage that renters insurance provides.

Renters insurance’s liability coverage does not cover common spaces that are not rented or managed by the tenant. The property owner’s liability when the building is rented is typically limited to the communal area that all of the building’s tenants share. For example, an apartment complex’s homeowner’s insurance or business insurance would cover it from a liability standpoint in the common park areas, a common pool, workout facility, group laundry facility, the parking lot, and other common areas. If an accident happened in those areas, the apartment or homeowner’s policy would cover someone who was hurt and protect the homeowner from liability. It is slightly different if you are renting an actual house and not an apartment in a complex. If you are renting a home, your renters insurance liability coverage would extend into your yard assuming that you do not share it with any other people as a common space.