Personal Property vs. Liability Coverage: What’s the Difference in Renters Insurance?

As a renter, you typically have a lesser financial stake in your home than if you were to own it outright. However, despite the physical structure and common areas of your building being your landlord’s responsibility, you may still require robust and versatile insurance coverage. The right renters insurance can help financially protect your assets and interests, but understanding the various aspects of your policy can be complicated.

What Is Personal Property Coverage?

Although your landlord or property management company is likely responsible for insuring the structural elements of your home, their coverage does not include financial protection for your personal property. Fortunately, renters insurance can address these coverage needs and potentially help you recoup losses involving your electronics, furniture and other belongings. Covered incidents typically include the following:

• Fires

• Theft

• Burglary

• Vandalism

• Explosions

• Burst pipes

• Hail

Your belongings are also typically covered even when not in your rental home, such as if something is stolen from your car or while you’re traveling.

What Is Personal Liability Coverage?

Renters insurance can also financially protect you and your family from incidents in which you’re at fault for third-party losses. This coverage can help limit out-of-pocket costs for incidents occurring in your home, but also typically extends beyond those confines. Specifically, you might be eligible for aid after the following types of incidents:

• Bodily injuries—If you or another insured are at fault in an accident where someone else is injured, such as a guest or passerby, your coverage may help pay for their medical bills and other losses.

• Property damage—Personal liability coverage in renters insurance may also help pay to repair or replace other parties’ property if you cause damage, such as if you start a fire that spreads to a neighboring unit.

We’re Here to Help

Both personal property and personal liability coverages are integral staples of renters insurance. Understanding how they work and making sure you have a suitable policy is crucial. Contact Primo Tax & Insurance today to discuss your options and get a free renters insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.