Understanding personal liability claims as a renter - what you should know

This guide is part of our series on tenant liability insurance and personal liability coverage. 

When you think about tenant insurance, you might associate it more with the financial protection of your personal belongings. In reality, that’s not its only purpose. Personal liability coverage (also known as tenant liability insurance) is another common part of a tenant insurance policy. 

It relates to situations where a policyholder is considered responsible for injury to another person or damage to property that isn't theirs. Read on to find out more, as well as how making a claim can sometimes work for this kind of incident. 

What can count as a personal liability claim?

Liability claims for renters generally fall into two categories: injury to another person, or damage to property belonging to someone else. A successful claim could help you pay for any damages, as well as supporting you financially with court cases and legal fees. In some cases, pet bites or other injuries they cause might also be covered by a personal liability claim. 

Examples of a claim 

Every claim will be unique – but the incident itself usually falls into one of a handful of categories. 

• A guest is injured in a rental unit. A visitor slips on a wet floor, trips on a rug, or is bitten by a pet. If the injured person seeks medical treatment and holds the renter responsible, a claim may be brought forward for related costs.

• Damage occurs to a neighboring unit. A fire that starts in one unit can spread to a neighboring one. Likewise, an overflowing bathtub might lead to water damage in the unit below. In these situations, the affected property belongs to someone else, which is part of what distinguishes a liability claim from a standard property claim.

• Damage to someone’s belongings away from home. Liability coverage under some renters policies aren’t necessarily limited to the policyholder's address. Damage to someone else's property while visiting them, or to a borrowed item, can sometimes fall under the personal liability umbrella.

These examples share a pattern. An action connected to the policyholder results in injury or damage experienced by someone else, and that person, or their insurer, may pursue the matter with the responsible party.

How to make a tenant liability insurance claim

Liability claims tend to move through a similar sequence, though the exact process can vary by situation and insurer.

1. An incident occurs. Someone is injured, or property belonging to another party is damaged. 

2. The insurer is notified. This is typically an early step in the process, involving a description of what happened and who was involved.

3. An investigation takes place. For injury-related claims, this can involve statements from those involved along with medical documentation. For property damage, it may involve repair or replacement estimates. This stage is generally about establishing what occurred and how it relates to the policy. Legal support can also be hired to help defend you during any disputes about responsibilities.

4. The claim reaches a resolution. Depending on the investigation, this can involve a settlement or payment to the affected party, or a decision that the claim falls outside the policy's terms. Timelines can vary depending on the complexity of the situation. Sometimes claims might only reach a resolution after going through a legal court process. 

Most providers will have their own claims process. This might involve different steps, or different types of information that needs to be collected. 

What falls outside personal liability coverage?

Tenant liability insurance usually only applies to specific parts of a renter’s policy. Liability coverage relates to harm experienced by other people or damage to their property. It generally does not extend to:

• Intentional acts – liability coverage is typically associated with accidental situations, not deliberate ones.

• The policyholder's own injuries or belongings – these are usually addressed under separate parts of a policy, such as personal property or medical payments coverage.

• Business-related incidents – injury or damage connected to a business run from a rental unit may fall outside standard renters liability provisions.

You’ll hopefully never have to make a personal liability claim. If you do, make sure to refer back to this guide as a starting point for understanding the process. 

The information provided on this page is intended for general educational purposes only and does not constitute insurance advice, a recommendation, or an offer to sell insurance. Every individual's insurance needs are unique and depend on personal circumstances. We encourage you to consult with an independent licensed insurance broker in your province who can assess your specific situation and recommend appropriate coverage.