Renters insurance exists to protect you from financial loss when an accident occurs on a property you are renting. If someone gets hurt on your rental property, though, you might have questions about how insurance can help. Does renters insurance cover personal injury in these types of situations?
Yes, renters insurance does cover personal injury on a rental property. However, it is important to understand what types of injuries renters insurance can cover and how to navigate the claims process for complex accidents.
What Is Renters Insurance?
Renters insurance is a type of coverage that protects your personal belongings when you rent a property, up to a certain coverage limit. It typically covers losses caused by fire, water damage, theft and other unavoidable disasters.
It will also cover certain injuries and medical costs when a guest experiences an accident on the property. This usually applies to minor costs such as ambulance rides, ER visits or some types of surgery.
Landlords may choose to require tenants to carry renters insurance as part of the lease agreement. You also have the choice of adding extra coverage options or expanding your coverage limits.
While standard renters insurance usually covers immediate medical costs, it will not protect you from liability if a guest accuses you of negligence. Renters liability coverage offers additional protection if a guest on your property decides to sue you for causing your injury.
What Types of Injuries Does Renters Insurance Cover?
Renters insurance exists to protect your property and financial interests. In addition, it typically covers personal injuries, but only those incurred by guests. This can still greatly benefit you by ensuring that you do not have to compensate the other party out of your own pocket.
If a guest on your rental property experiences any of the following types of injuries, your renters insurance will likely cover their medical expenses:
- Slip and falls
- Dog bites
- Burns
- Falling tree accidents
- Other accidents caused by hazardous conditions
If an accident occurs on your rental property, it is worth reviewing your renters insurance policy to make sure you have coverage. A personal injury lawyer can help explain any terms you do not understand. An attorney can also advocate for you if the insurance provider claims that your policy does not cover the accident.
Are There Injuries That Renters Insurance Will Not Cover?
Renters insurance does not cover every type of accident or injury that might occur on a rental property. It is particularly important to keep in mind that renters insurance will not cover personal injuries for the renter or other residents.
Other types of injuries that renters insurance does not cover may include:
- Injuries caused intentionally by a tenant
- Criminal activities
- Injuries related to business operations
- Motor vehicle accidents
Depending on the type of accident, coverage might come from other types of insurance aside from your renters insurance policy. For example, your auto insurance may cover a vehicle accident in your driveway. You might need business insurance to cover injuries that befall a guest during a consultation or other professional service you provide out of your rented home.
Who Files a Renters Insurance Claim After an Accident?
The person who suffers a financial loss will always be the one who files a renters insurance claim. In a personal injury case, this means that the guest who sustained an injury on your property will be the one to file a claim with your renters insurance provider.
When an accident occurs, each party should carefully document what happened. This includes taking photographs and exchanging insurance information. After an accident, the injured guest typically files a claim with your renters insurance provider. The insurer will then:
- Review the policy to confirm coverage.
- Investigate the accident, which may include requesting medical records, photos, and witness statements.
- Offer a settlement based on the policy’s medical payments and liability coverage limits.
If the insurer denies the claim or offers an insufficient settlement, the injured party may choose to file a lawsuit against the renter or landlord.
Does Renters Insurance Cover Costs if You Face a Lawsuit?
Renters insurance will cover the legal costs of a lawsuit if your policy includes personal liability coverage. Not every renters insurance policy includes personal liability coverage. Familiarizing yourself with the terms of your policy can help you prepare for any legal action you might face.
Even though renters insurance will cover some or all of a guest’s medical costs after an accident on your property, they may still choose to file a lawsuit if they believe that the accident occurred due to your negligence.
If someone sues you for an accident that happened on your rental property, it is a civil lawsuit. This means that you will not face criminal charges or the possibility of jail time, but a verdict in the other party’s favor will mean that you have to compensate them for their damages either out of your own pocket or through your personal liability coverage.
What Happens During a Personal Injury Lawsuit?
Litigation in a personal injury case starts when one party believes they cannot achieve a favorable settlement outside of court. In the case of a rental property accident, this typically happens when an injured guest believes they deserve more compensation than the renters insurance policy is willing to provide.
Facing a lawsuit does not necessarily mean you will go to trial. It is preferable for both sides to settle the matter through negotiation. This helps the affected parties avoid legal fees and ensures that they can control the outcome of the case.
The negotiation process can take several months and sometimes even a year or longer. This is because lawyers and insurance adjusters on either side will thoroughly investigate for relevant evidence until all the facts surrounding the accident are clear. There will be a series of settlement offers and counteroffers until the discussion leads to a number both sides can agree to.
If negotiations fail, it may be necessary to take the lawsuit to court. Each side will present their case to a judge and jury. Ultimately, the court will hand down a verdict stating the amount of compensation one side owes to the other for the losses suffered.
Does the Injured Person Have To Prove the Renter’s Fault?
When a guest sustains an injury on a rental property, they do not have to prove fault in order to seek compensation through renters insurance. Medical payment coverage applies even if the renter is not at fault for the accident.
When the injured person wishes to hold the other party liable beyond the limits of a renters insurance policy, though, fault will play a significant role. A guest can seek additional coverage for pain, suffering and other damages by establishing negligence on the part of the renter or landlord.
Proving negligence in a rental property accident requires the injured person to prove that either the renter or landlord knew about an unsafe condition and failed to address it in a reasonable timeframe. The injured person must also prove that this negligence directly caused the damages they sustained.
When Is the Landlord Liable for Rental Property Accidents?
Renters insurance is a no-fault system, meaning that an injured guest can seek compensation for an accident even if no one is to blame. However, there are circumstances when the property’s landlord is at fault for the accident. If the landlord is liable for an accident stemming from negligence, either a guest or a renter can file a personal injury claim for additional compensation if they sustain injuries.
When an Accident Happens Outside the Rental Property
The landlord is responsible for maintaining areas outside and between rental units. This includes sidewalks, walkways, stairwells and certain landscaping features. If a hazard causes an accident in these outdoor areas, the landlord may be at fault if they had ample opportunity to correct the dangerous conditions beforehand.
When the Landlord Neglects the Rental Property Interior
In most cases, the tenant is responsible for maintaining safe conditions for guests within the property they are renting. However, certain aspects of the interior of a rental property are the landlord’s responsibility.
For example, the lease agreement might state that the landlord is responsible for maintaining the plumbing or electrical systems. If a fault in these systems causes an accident, the landlord is likely to be at fault, especially if they were aware of the problem.
How Much Renters Insurance Coverage Do You Need?
Insurance companies typically offer renters insurance with starting limits of $10,000 in personal property coverage and $100,000 in liability coverage. However, you can usually customize your policy by choosing higher coverage limits or adding other forms of coverage, such as earthquake insurance.
If you face a personal injury claim, though, the other party may seek to recover damages for significant medical bills, physical or emotional pain and other applicable damages. Choosing liability coverage limits of $300,000 or $500,000 may be appropriate depending on your budget and the value of your assets.
Personal liability insurance is important to add to your policy because someone might attempt to sue you even if your innocence is obvious. Even if you suspect that it will be easy to prove that you did not contribute to the accident, you may still have to pay legal fees along the way. Personal liability insurance can protect you from those fees.
What Happens if You Do Not Have Renters Insurance?
If you do not have renters insurance or any other form of individual liability coverage, then you may be directly responsible for compensating someone who sustains injury on your property. They can pursue a personal injury claim that may force you to pay for their medical bills and other damages out of your own pocket.
While not every landlord requires their tenants to carry renters insurance, it is well worth considering. Many people believe they do not need renters insurance if they are careful with their property or if they do not invite guests. Keep in mind that, without renters insurance, you may be liable for accidents that befall maintenance personnel, delivery drivers and other individuals considered as “guests” on your property.
You can also choose to carry an individual liability insurance policy separate from any renters or homeowners insurance. This might be an appealing choice if your situation makes it impractical to have a broader renters insurance policy.
Can a Personal Injury Lawyer Help With Renters Insurance Issues?
Personal injury lawyers can help with a wide range of renters insurance issues. Whether you have questions about a policy, experience an accident on someone else’s property or if you are facing a personal injury lawsuit from an injured guest, speaking to an attorney can give you peace of mind.
Your legal team can also help resolve payment or compensation issues. Lawyers know how to hold insurance companies accountable so that injured people quickly receive the compensation they deserve. Whether you are an injured guest or an overwhelmed renter, you can rest easy knowing that your attorney is moving the process along in the way that benefits you most.
At Sargon Law Group, our premises liability attorneys can help with a rental property accident by:
- Investigating the cause of the cause of the accident
- Gathering evidence to support your case
- Determining if the landlord bears any liability
- Negotiating with the insurance company and other lawyers on your behalf
- Representing you in court if necessary
Experienced personal injury lawyers know just as much about landlord-tenant law and insurance policy terms as the insurance companies themselves. This ensures that you can handle any discussions or negotiations on an even playing field.
Call a Personal Injury Attorney Who Understands Renters Insurance
Rental property accidents can be overwhelming to handle on your own, especially as a renter who might face a personal injury lawsuit. It is difficult to understand which type of insurance will cover the accident and it might not even be clear if renters insurance covers the personal injury.
At Sargon Law Group, we simplify the process for renters and injured people in Arizona, New Mexico, Colorado and California. Contact us today to schedule a free consultation and learn more about how we can help you with renters insurance issues.