Your Renters Insurance Policy Liability Coverage - Some Explanations

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When you're looking into insurance for renters, you're probably thinking about all those possessions you can't afford to lose. But a renters insurance policy doesn't just cover the tangible things you own, most policies have liability coverage built in. And this is critical coverage to have these days as more and more people file frivolous lawsuits and make life miserable for the hapless renter.

The liability portion of the policy is designed to protect assets if you're sued by someone who is insured - physically and mentally or otherwise - while on your rented property. Liability is also a very important aspect to homeowners insurance. Earlier in this century, governmental regulations prevented property Insurance companies from selling liability insurance. So, the homeowner had to purchase two or more policies, often from different insurance companies, to obtain total insurance protection.

Starting in the 1940s, these regulations were changed. Now, the Homeowners Policy Program provides liability coverage automatically addition to the property coverages. The combination of two or more types of coverage into one policy is called a package policy. A basic renters insurance policy is also a package policy. The liabilities covered by homeowners insurance rise from civil, not criminal law. Criminal law deals with conflicts between an individuals behavior and the state. Civil law provides the means by which one person or institution can sue another in order to protect private property or a right, which one party feels has been violated by the other.

If an accident occurs on your property, anyone who is hurt can hold you financially liable for the injuries they suffer. Most renters policies offer you liability protection for bodily injury and property damage. This coverage applies to the injured persons claim and the costs of defending you if you are sued.

The standard policies liability protection covers injuries or damage caused by you, and anyone else who is a named insured in the policy. The liability protection applies to injuries that occur on your property or anywhere in the world. If the named insures dies, coverage continues for legal representatives - but only with respect to the premises and property of the deceased. Until a legal representative is appointed, a temporary custodian of the named insured's property would also be covered.

All household members who are insured at the time of the named insured's death will continue to be covered while they continue to live at the residents premises. Who's insured is an important definition. In a standard policy, the insurance company promises to pay any damages and provide legal defense for any insured. These are important benefits. Let's look at some definitions of types of damage.

Bodily injury means harm, sickness, or disease and includes the cost of required care, loss of services or death resulting from injury. This is one of the main kinds of loss that constitute a civil liability.
Property damage means injury to or destruction of tangible property and includes loss of use of the property. This is another of the main kinds of loss that constitute a civil liability.
Occurrence means an accident - including continuous or repeated exposure to conditions - which results in bodily injury or property damage neither expected nor intended by an insured person. A situation must be deemed an occurrence before insurance will apply.

So as you can the liability aspect for insurance for renters can seem complex but it is an important part of your policy. You should get familiar with liability coverage because you never know when it may save you from a lot of hassle!

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