What is personal liability coverage for renters insurance?

Personal liability coverage on your renters policy may cover you if a claim or lawsuit is brought against you for damages due to bodily injury or property damage, up to the limits of your coverage. It may also pay for legal costs resulting from lawsuits.

Personal Liability for Renters Insurance

What does personal liability insurance for renters insurance cover?

Personal liability coverage may cover you, including legal fees and settlement costs, if you cause bodily injury to someone or damage their property, up to the limits of your policy. Review your renters insurance policy with your insurance agent to see how personal liability coverage may cover you in the event of a loss..

Example:

While visiting your apartment, your friend hands you their laptop and you accidentally drop it, causing damage to the appearance and functionality. In this case, you're liable for damage to the laptop, and your personal liability coverage on your renters insurance policy may pay for the repairs or replacement, up to your policy's limits.

What isn't covered by personal liability insurance for renters?

Personal liability coverage on your renters insurance policy won't cover the following:

Damage and injuries resulting from car accidents
Bodily injuries that you sustain
Property damage to property owned by you
Business-related claims
Intentional harm or damage

With renters insurance, personal liability coverage is standard on a policy. Your cost for renters liability coverage will depend on your coverage limit.

Example:

Your guest slips and falls on your wet floor, is injured, and needs medical care. In this case, your personal liability coverage on your renters policy may pay for your guest's injury, as well as legal costs if you're sued, up to your policy's limits.

How much renters insurance personal liability coverage do I need?

Most insurance companies give you three standard choices for personal liability coverage limits on your renters insurance: $100,000, $300,000, or $500,000. Your net worth should be taken into consideration when determining the amount of personal liability coverage you may need. To calculate your net worth, add up all of your assets, including checking, savings, retirement accounts, and other things of value you own, then subtract your debt. Learn more about standard renters insurance coverages.