Renters insurance is not available to up to 70% people who rent a house in the United States. Renters insurance is usually priced at $15 per month. This is a shockingly low amount. Renters insurance may protect them from personal injuries on the property. We’ll take a closer look at what’s covered and what’s not.
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Renters Insurance Covers Personal Injury?
Renters insurance provides coverage for personal injury to third parties under the liability portion of the policy. This portion does not cover injuries to policyholders. Instead, it will cover the medical bills of the injured party only if the accident occurred on your property. Your policy may cover minor injuries that were not your fault if your renters insurance includes coverage for medical payments to other parties.
What Is Personal Liability in Renters Insurance?
Renters insurance policies include personal liability coverage, which helps pay medical bills in the event that someone is injured and you are found to be liable. You can use it to pay for damages you do to another person’s property or for legal fees if a lawsuit arises.
Renters insurance usually comes with $100,000 of personal liability coverage. You can add more, if needed. There are some situations where you might want to choose more coverage. We’ll discuss these a little later. Let’s look at a few situations where renters insurance coverage might or might not be able to protect you.
Injuries to You or Your Roommates
Renters insurance protects you against sudden and unexpected events. Renters insurance does not cover any injury to the renter or anyone else on the policy. It is unlikely that it will cover your roommates, who live on the property. Also, it is unlikely to cover any injuries suffered by your visiting family.
These practices are in place not only because the people involved may be too close to their policyholders, but also to prevent fraudulent claims.
Injuries to Another Party
Renters insurance kicks in here. It will cover medical costs, including X-rays and surgery, as well as physical therapy, follow-up visits to the doctor, and any legal fees if someone is injured at your home.
Renters policies include $100,000 of personal liability coverage. Your policy will cover up to this amount for any renters insurance claims you make. You’ll only need to pay the deductible to get your insurer to cover the rest.
If your guest breaks their leg while jumping on a trampoline, they will need to undergo surgery, a plaster, physical therapy, and many follow-up visits with doctors. You are likely liable, as trampolines tend to be considered attractive nuisances, and come with blatant liability.
If their medical bills are $60,000. You would have to pay the $1,000 deductible and then your insurance company would cover the rest of $59,000. What if you are sued? This would be the same claim. Your insurer would cover up to $40,000 in legal fees if you had $100,000 of coverage.
If the total legal and medical fees and bills exceed $100,000, then you are legally and financially responsible for the remainder. There are certain scenarios where $100,000 is not enough, particularly if there’s a pool at the property. We’ll go into more detail about how much insurance you need.
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You Can Be at Fault or Not
You, your roommates, and family members will not be covered under your insurance policy – whether or not you are at fault. Liability coverage pays the maximum amount of your policy for injuries caused to others when you are at fault. What happens if you are not held liable for an injury that occurs on your property?
This is where the medical payments to other coverage comes in. It is usually an optional coverage that you can choose to opt in or out of. This coverage is designed to cover minor medical expenses, such as X-rays or initial doctor’s visits, regardless of whether you are at fault.
MedPay is a term used to describe medical payments made to others. The maximum amount per claim for MedPay is usually $5,000. Renters insurance can pay for minor medical expenses if a guest falls down your stairs and sprains an ankle. You’ll need to use this coverage with caution, as the more claims that you make, the higher your insurance rates will be.
In most cases, it’s better to use the health insurance of the injured person to cover costs. MedPay still has the same rules about who is covered. This means that neither you nor your family or roommates can be covered.
How Much Renters Liability Insurance Do I Need?
The amount of renters liability coverage you need will depend on several factors. The standard coverage of $100,000 is sufficient for most renters. However, dog owners and those who have trampolines, swimming pools, or other nuisances should opt for coverage up to $250,000.
Renters who have private pools or hot tubs will need at least $250,000 of coverage. This is because accidents that happen in the water can be life-threatening, and lead to drowning.
These policyholders might even consider umbrella insurance in order to increase their liability coverage up to $1 million.
If their dog bites another person, the owner may also be liable for a large amount of money. Dog bites may cause infections, amputations and even permanent trauma. Dog bites can be very expensive to insure because of these factors. They’re also more common than most people think.
Renters’ Liability Insurance Costs
Renters insurance costs about $15 per month. Personal liability insurance is included in this price. This price is determined by your location, the amount of coverage you require, and how many claims you have filed in the previous years.
Clovered makes it easy to get a renters’ insurance policy at an affordable price. It only takes a couple of minutes. Answer a few simple questions on our online quoter and we will match you with the best policy.
Having Trouble with Insurance? Contact Tenina Law Today!
We at Tenina Law believe that you deserve to have experienced legal representation who can help you hold the party responsible for the damages they caused. To schedule your free consultation, contact us today via phone or by using our online form. We will let you know the cost structure upfront so that you can proceed without any stress.
