Quite simply put, it is the responsibility of the landlord or tenants to ensure that the rented premises are safe. But, what happens when a situation arises that leads to failure to hold up this responsibility due to any such factors, ranging from(not limited to), criminal activity, environmental hazards, defective conditions of the property, etc? That’s where the tenant liability insurance comes into the picture.
The tenant liability coverage, as per definition, is insurance for loss or damage of the rented property resulting from an action (or lack thereof) of the Tenant who is renting the space. Hence, the primary differentiator of this policy from the ones that the landlord holds is to provide help against deductible, property and litigation charges levied on by the landlord in case unintentional damage caused to or in the rented property.
But what is often very confusing with this insurance, is how do you clearly demarcate what the tenant is liable to and what the owner is liable to? Let us take an instance of a fire breaking out in the rented building or complex. There’s definite damage caused to the property. The owner comes to you asking for remuneration for the damage caused. Alas, if there was something you could do to cover this cost. Oh yes, you could. The tenant liability insurance will come to the rescue, which will protect you against the financial claims from the landlord.
Now that we got one thing out of the way, about what this insurance is, let’s jump to what it covers. The insurance covers all kinds of personal and property claims that arise out of accidental or unintentional actions. However, with tenant legal liability coverage, you can also shield yourself with the legal claims that come with the situation, slapped on by the owner of the rented space.
Bodily Injuries are Also Covered in Certain Plans
For instance, if you have a business showroom and a customer enters and trips over one of the items you have kept there and if it is found that you are legally liable for the injury caused, then too this policy will hold good. You’ll need to pick a plan that will provide coverage to a third party while they are on the premises of your rented property.
But again, as disclaimers go, if the damage is proven to be committed as a part of wrongful intent then of course, it is not liable to be covered as a part of this policy. And also if you have physical assets as a part of the commercial complex, ex: computers, office furniture, the tenant liability insurance would fail to cover it. You could instead opt for a commercial property insurance policy that could help you better.
Coverage is Sorted. What about the Terms and conditions?
It is an unsaid rule that you’ll need to read through the plan to understand what the coverage holds for you and how much of it makes sense for you. For example, if you run a business out of your rental apartment or home, this liability insurance likely won’t cover the costs of claims against your business. So here is where it’s important to get the right advice and the right company to take the insurance from, who will help simplify the language and help you all along to understand your requirements and deliver exactly what you need!