Tenants Legal Liability Coverage

Definition - What does Tenants Legal Liability Coverage mean?

Tenants 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.

Insuranceopedia explains Tenants Legal Liability Coverage

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 the accident through legal claims. If the tenant has tenants legal liability coverage, however, 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).

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