3 Things You Should Know About Fire Damage Legal Liability Coverage

7/27/2022 (Permalink)

Fire damage in Lexington, Ok home

3 Things You Should Know About Fire Damage Legal Liability Coverage

Most of the time, when a fire occurs in a rental property, the property owner's policy covers the damage to the building and the tenant's policy covers damage to the tenant's personal belongings. However, there are some instances where a tenant may be held liable for the damage to the building they occupy. This liability may be covered by fire damage legal liability coverage.

1. What it Covers
This coverage, which may be included as part of a general liability policy, applies to damages caused to the rented premises a tenant occupies that the tenant is legally liable for. It may be referred to on the policy as a "damage to premises rented to you" limit.

2. Who Needs This Coverage
Any tenant who negligently causes a fire that damages the rental unit or other parts of the building could be sued by the property owner. Fire damage legal liability coverage would pay for repairs to the building, cleaning smoke damage, and other costs the tenant is found to be legally liable for due to negligent actions. This coverage could be beneficial to any tenant and may be a requirement in some rental agreements.

3. What the Coverage Limitations Are
This coverage usually comes with a limit of $50,000 or $100,000. It only covers liability that arises out of damage caused by a fire. It would not cover other causes of loss, such as water damage. The coverage does not apply to contents. It only covers fire damage restoration for the premises. The insured person must be found to be legally liable for the damage and other exclusions may apply.

If your negligence causes a fire that damages the premises you rent, fire damage legal liability coverage may pay for the damage to the building you are legally liable for. An insurance professional in Lexington, Ok, can explain your coverage options.