How Much Liability Coverage Do You Need in Your Tenant Insurance Policy?

Many people are familiar with the content insurance part of tenant's insurance. But you need to think a little about the liability portion as well. Basic liability coverage can make a huge difference in what comes out of your pocket and what doesn't if there's an injury or damage.

What Liability Insurance Covers

Liability insurance covers things that can happen to people in or around your apartment or housing unit. It also covers things that can happen accidentally. For example, if someone falls and injures themselves in your apartment, liability can protect you against a lawsuit.

If you leave a hot iron on and it starts a fire that damages the apartment, liability insurance can help you with that damage as well. But there are degrees of liability insurance. You may find that you don't need any at all. You may find that you need more than basic coverage.

Your Apartment and Your Lifestyle

While tenant insurance often comes bundled, it's possible to purchase liability insurance separately. It's all about what works for you. To figure it out, consider both your apartment and your lifestyle.

Your apartment — Is your housing unit is in a state-of-the-art facility with security options, a clean exterior, and clean interior. Does your landlord employ guards or routinely maintain the area to make it safe for pedestrians?

All of these things contribute to safety. The more safe the apartment and its surroundings are, the less the likelihood of an accident occurring. In many cases, the more security features you have available to you, the more of a discount you can receive on your tenant's insurance.

Are you in an older apartment? — Does it lack security functions, such as sprinkler systems, or easily accessible fire extinguishers? If that's the case, then liability insurance becomes even more important. If the location of the apartment is in an area prone to crime, then there's an even greater chance of some accident happening or damage occurring.

Your lifestyle — Are you a loner? Do you have, at most, less than a handful of guests at any given time? If you rarely have guests, then you don't need as much liability coverage. The odds of accidents or damage decreases in direct proportion to how many people are crowding in or around your apartment at any given time.

By contrast, if you like to throw parties or host more than occasional gatherings, then you need that extra liability protection. When there's more than a handful of people, you can easily lose control of the situation. The odds of damage or injuries rise exponentially.

Putting It Together

If you put these two things together, you will have an easier time of figuring out whether you need less, more, or even no liability protection. The truth is, you can never predict the future, so it's always best to have at least a basic amount of liability coverage.

Speak to a home insurance carrier like Diamond Insurance Agencies about tenant insurance. See if their basic liability offerings fit where you live, and how you live. If they don't, see what kind of additional liability insurance they can offer without going beyond your insurance budget.

Share