RISK #1
HIGHER RISK OF LAWSUITS AND LIABILITY SPILLOVER
One of the most significant reasons to require renters insurance is liability. A tenant may unintentionally create a dangerous situation: a guest trips over an extension cord, a child gets injured on a loose rug, or a dog bites a visitor. When an injury occurs, lawyers often name everyone in sight: the tenant, the landlord, the property management company, and sometimes even vendors. Even if the landlord did nothing wrong, defending a claim can become expensive and time consuming. Renters insurance can include personal liability protection for the tenant and can help pay legal defense costs and damages when the tenant is responsible. That matters because when a tenant has no coverage, the injured party may try to pursue the landlord’s insurance policy instead, especially if the tenant has few assets. Dog bite claims are a perfect example of how quickly liability exposure can escalate. In 2024, the average cost per dog bite claim rose to $69,272, according to reporting based on Insurance Information Institute data. Without renters insurance, the landlord may face more pressure and more legal exposure, even if the tenant is clearly at fault.
In 2024, the average cost per dog bite claim rose to $69,272
BOTTOM LINE: Renters insurance gives tenants their own liability safety net and reduces the chance that every incident turns into a landlord centered legal fight.
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