Homeowner’s insurance also helps to cover your personal liability as a homeowner, that is to say – when people are hurt on your property or if you are negligent in some instances.
For example, your liability coverage will help cover the medical costs of a visitor who was injured on your property or the cost to fix your neighbors new SUV after it is crushed by a tree that you kept meaning to cut down that just snapped in a snow storm.
These sorts of situations, the unexpected, are some of the reasons to make sure you have the proper coverage in place before something goes wrong. Personal Liability coverage will also help to cover the costs to defend yourself against lawsuits, but only if it is set up the right way before something happens! Without reviewing the holes that might exist in your current coverage, you cannot know what you might be on the hook to cover out of your own pocket.
Renter’s insurance also provides coverage in the event you cause damage to the building you are renting. For example, you accidentally leave a candle burning that starts a fire damaging your rental unit. If you have coverage in place before an accident, damage to that unit and other damaged units would be covered.