Unintentional injury to others
Liability coverage coverage protects you if you’re sued for unintentional injuries or property damage caused by your actions – or in some cases, even caused by your inactions. This where you stand to lose the most money, yet it’s something that very few people ever think about.
When do you need liability insurance?
Here are several examples of situations in which you’d be happy to have liability insurance:
You open your umbrella on a busy street, and accidentally poke someone in the eye.
You’re golfing and underestimate the power of your swing. Your tee shot flies over a hill and hits another golfer right on the head.
It snows, and you haven’t had time to clear your front steps. Someone comes up your steps, and slips, injuring her back.
A neighbour’s child is jumping on your trampoline, and slices her foot open on a spring.
You’re walking your dog, when someone becomes tangled in your leash, and trips, cracking their head on the sidewalk.
It’s important to remember that a landlord’s insurance policy will not protect a tenant from any of these situations.
A real-life example
A common example in which liability insurance is handy is someone slipping on your icy step.
You might think, “those steps belong to the landlord, not me!” It may be true, and the injured person may sue the homeowner. But you are the occupant of the premises, and as the occupant, you have a responsibility to keep it in a safe condition for visitors. The injured person can sue you as well, alleging that you failed in your duty to properly take care of the premises that you occupy. Your landlord’s insurance policy will not protect you at all, so if you don’t have tenant’s insurance, you’ll be on your own to hire a lawyer, fund your own defense against the lawsuit, and ultimately pay damages if the court finds you negligent.
Most tenant policies include at least $1,000,000 in liability protection. In the above example, your tenant’s insurance provider would step in to hire a lawyer, help you defend yourself against the lawsuit, and even pay certain damages if the court were to rule against you. This can help you to avoid serious financial harm in the event that someone else is accidentally injured on the premises that you occupy as a tenant.
Accidental damage to the rental unit
Most tenant’s insurance policies also include some coverage for tenant legal liability. This is not the same as the liability coverage discussed above. Tenant legal liability insurance covers you for damage you unintentionally cause to the property you’re renting, usually as a result of fire, explosion, water escape and smoke. For example, you might put food on the stove for dinner, then decide to watch an episode of TV. You doze off, and next thing you know, your kitchen is filled with smoke. With tenant’s insurance, you’ll have coverage for the cost of repairs; without tenant’s insurance, you’ll be on your own to pay out of pocket to repair the damage.
Square One’s Tenant’s Protection Coverage offers an improved, streamlined version of this coverage. With Tenant’s Protection Coverage, you’ll have coverage for damage you accidentally cause to your landlord’s property up to the chosen limit. Your landlord can deal with the claim directly, and your premiums won’t increase if you do make a claim.
Want to learn more? Visit our Renter resource centre for more tips and information about life as a renter. Or, get an online quote in under 5 minutes and find out how affordable personalized home insurance can be.
About the expert: Daniel Mirkovic
A co-founder of Square One with 25 years of experience in the insurance industry, Daniel was previously vice president of the insurance and travel divisions at the British Columbia Automobile Association. Daniel has a bachelor of commerce and a Master of Business Administration (MBA) from the Sauder School of Business at the University of British Columbia. He holds a Canadian Accredited Insurance Broker (CAIB) designation and a general insurance license level 3 in BC, Alberta, Saskatchewan, Manitoba and Ontario.
About the expert: Rena Novotny
Rena's 23-year career started as an independent adjuster where she specialized in complex property, liability and special risk loss. As a branch manager, Rena hired, trained, mentored and coached several adjusters. She continues part-time post-graduate studies in neuro-psychology and traumatization, learning how both may impact the insured's engagement on catastrophic claims. Rena has a MA (Conflict Analysis and Management), CRM, CIP, and holds a level 3 adjusting license.
