Most renters focus on covering their belongings, but the liability portion of the policy can be the most financially important part.
What liability covers
- Injuries to guests: if someone slips and falls in your unit and sues.
- Damage you cause: for example, an overflowing tub that ruins the unit below.
- Legal defense costs, even if you are not ultimately found at fault.
Choosing a limit
Standard policies start at $100,000, but $300,000 is common and usually costs only a few extra dollars a month. Pick a limit that reflects what you could be sued for, not the bare minimum.
When to go higher
If you have significant savings or assets to protect, consider a personal umbrella policy on top of your renters liability for an extra layer of protection.
Bottom line
Personal-property coverage replaces your stuff; liability coverage protects your finances and future income. Do not shortchange it.