When is liability insurance needed?
Personal liability renters insurance gives you financial support if you are accused of or sued for failing to protect another person from a foreseeable risk, resulting in property damage or injury. For example, your dog bites someone, which results in a trip to the hospital. Whether or not the incident takes place on your property, you could be liable for damages if the other person brings a claim against you because you failed to control your dog.
However, you may not necessarily face a lawsuit if someone brings a claim against you. If they decide to file a claim with your insurance provider, they may be issued a denial letter if your insurer determines that you were not liable for the injury. If this happens, your case will only go to court if the claimant chooses to fight the denial letter.
If you have renters liability coverage, you would not be responsible for paying litigation costs or any other damages even if you lose a case. Given the high costs of litigation and medical treatment, having renters insurance with good liability coverage could help you avoid a devastating financial judgement.
What does personal liability insurance cover?
Your personal liability insurance covers most claims and lawsuits you might face as a result of your negligence. These are some common occurrences:
Dog bites—Dog bites are frequently connected to personal liability claims, and the average price of caring for a dog bite is $35,000. Although most canines are covered by your personal liability coverage, some breeds are excluded from renters insurance coverage.
Slip-and-falls—Slips and falls might arise when you neglect to protect a houseguest from foreseeable danger, such as a wet floor. However, determining fault for slips can be tricky because there are many reasons why someone would fall. Although every incident is different, you can take reasonable precautions to ensure no one falls in your home.
Swimming pools—Swimming pools may lead to injuries and accidental drownings, which could in turn lead to a liability claim. As with trampolines, swimming pools are deemed "attractive nuisances" because they can draw in kids who do not have permission to use your property.
Falling trees—If you are renting a single-family home and failed to maintain the property, a downed tree could lead to a lawsuit if it hurts someone or falls onto your neighbor's property. You should notify the property owner when you think a tree is rotting or poses a fall risk.
Your renters liability coverage also protects you from injuries or damage caused by intoxicated houseguests, leaks, fires, and libel and slander.
How much liability coverage do I need?
You should have enough liability coverage to meet the cost of any medical bills and litigation fees that you believe are possible. A typical renters insurance policy comes with $100,000 worth of liability coverage. It may seem like a high number, but it still might not be enough to cover the high cost of an accidental loss of life or a serious injury that occurs on your property. If your home includes a risky feature such as a pool or a trampoline, you might want to increase the amount of liability coverage on your renters policy. The cost to increase the liability coverage is minimal compared to the increase peace of mind you receive.
If raising the liability coverage on your renters policy is still not enough for your needs, you can purchase an umbrella policy, which provides liability coverage above the limit on your renters policy.
If you have questions or want to know get quote for renters insurance give us a call today at Hennessey, Thames & Leavitt Insurance Agency in Vicksburg, Ms. You can reach us by phone at 601-636-5560, by email at info-hennessey@leavitt.com or come by and see us at 1001 Belmont Street. Check us out on Facebook or our website leavitt.com/vicksburg
