What is the owner's liability insurance?

Liability insurance is standard on most home insurance policies. It helps you pay for your expenses when you find yourself legally responsible for trespassing on your property or when you need to pay for damage to someone else’s property.


Your landlord’s insurance policy probably won’t cover a house you rent. Home insurance usually covers the structure of the house and also includes liability insurance that can prevent you from paying out of pocket if you are late in certain situations.

If you have a mortgage on the house you are renting to tenants, your lender may require home insurance.


Injuries to tenants can be a problem for landlords, for example. Let’s say a loose handrail drops a tenant. You could be held liable for resulting injuries, according to the Insurance Journal, if you are found to be negligent in maintaining the property or if you simply failed to warn the tenant of a potential safety hazard.

If so, your homeowner’s liability insurance will likely help you pay for your legal defense and cover judgments against you within the limits set out in your policy.

Other situations could also put you at risk, according to the Insurance Journal. For example, if you do not provide adequate security to your tenants, or if your tenant behaves illegally and you do not take steps to prevent it, you could be held liable. Homeowner’s liability insurance, in general, can help protect you in these and similar scenarios up to the limit set in your policy.

Home insurance with liability insurance can give you peace of mind to have a safety net just in case.