What Does Tenants Legal Liability Coverage Mean?
Tenant's legal liability coverage is insurance for loss or damage of a property resulting from an action of a person renting space at that property.
This insurance, when purchased by the tenant, pays for the cost of the loss or damage caused by the tenant. This is different from a tenant's content insurance content policy which covers your own possessions within your unit.
Tenants must be told that just because the landlord has liability insurance, it may not be enough to protect the tenant against claims by the landlord's insurer for claims made. Often additional tenant liability can provide appropriate coverage to protect against the landlord's insurer.
People who rent space (residents of commercial apartments or businesses occupying buildings) may cause an accident resulting in property damage, such as a fire. The property owners might hold the tenant liable for the damage caused by accident and bring legal claims against them. However, if the tenant has the tenant's legal liability coverage, he or she will be protected from those claims. This policy works even if the tenant is not directly responsible for the accident (e.g. an employee of the rented office unwittingly causing a fire).
The tenant's legal liability may be written to only cover losses caused by the tenant and caused by the perils of fire, smoke, explosion (limited) and leakage from fire protection equipment. As an alternative, coverage can also be obtained on all risks but subject to a deductible.
