Tenant Insurance: What is Liability?
What do you think about when you hear the term: liable? It means your found responsible for something, right? So what do you feel when you hear the word: liability? Liability, in the same sense, is being found legally responsible for something. In the insurance world, liability is when you, the client, are found liable for damages. Damages can include injuries to another person or damage to another’s property that was unintentionally caused. In addition, there are also legal fees associated with someone trying to claim these damages. If you intentionally burned your brother’s three-week-old smelly sweatshirt, I’m afraid you’re on your own.
If you’re renting a house or an apartment, the landlord’s policy won’t cover the cost of your defence if you are sued for injuries, even if the injuries weren’t your fault. Your tenant insurance policy can cover the cost of your legal defence and pay any judgments up to your coverage limits.
When people think about liability insurance or being sued, they feel about those tacky lawyer commercials from the United States. “DID YOU STUB YOUR TOE HELPING YOUR FRIEND MOVE INTO HIS NEW APARTMENT?! CALL US, AND WE WILL FIGHT FOR YOU!” We aren’t nearly as intense in Saskatchewan, but we take liability seriously. In fact, unlike other types of claims where you have the option to ‘not-proceed’, your insurance company will not allow you to withdraw a liability loss until the completion of the claim.
Accidents can happen, and if you were held legally responsible for injury to another person or for damages to someone else’s property, without liability insurance, you could find yourself stuck with a hefty bill. And I mean hefty; lawyers do not come cheap, nor do court fees.
Personal liability doesn’t just protect you while in your home! Suppose you’re on vacation or spending the afternoon at the park, and your Frisbee goes astray and hits a cyclist. In that case, your liability coverage will protect you if you’re deemed legally responsible for their injuries and damages to their bike! That is to say, your liability coverage from your property insurance follows you around the world. Isn’t that cool?
Your tenant insurance automatically includes personal liability coverage, but depending on your situation, the minimum may or may not cut it. Every person has a different level of risk, so reviewing your case with an advisor can help ensure you choose a limit that works for you! Not to mention it’s the least expensive coverage on your policy! Seriously, it’s about a $10 difference between each tier from $1,000,000 to $2,000,000.
We like to think it’s better to be safe than sorry, and while tenant insurance covers a wide variety of things, liability is easily one of the most important parts! Want to learn more about the coverages you can get with Renters Insurance?
Interested in getting a quote? Try our quick and easy online quoting tool that shows you the price in real-time data!
Posted in Renters on January 16, 2019 by Harvard Western Insurance
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