Most property managers require renters to carry liability insurance in order to live in their community. This is because as a renter, you are the one financially responsible for any damage you may cause as a result of fire, smoke, explosion or water damage. Purchasing personal liability protects you financially in the event you are liable for injury or property damage to others. It is important to note that while personal liability protects you from a lawsuit, it does not protect any of your personal belongings.
Here are some examples of things Personal Liability Coverage protects you against:
- Your child leaves a toy in the stairwell and a visitor trips over it, falling down the stairs and ending up in the hospital.
- You accidentally start a fire that causes damage to the building.
- Your upstairs neighbor leaves the water running and it overflows into your unit, causing damage. Their liability policy will cover the damage.*
* In NC, water damage is currently not covered in the liability coverage section of the Renters Insurance Policy.