A homeowner, a landlord, or a tenant may be subject to liability if someone is injured on the premises. If there is no insurance, the damages will have to be paid out of pocket. Various types of insurance policies can shift liability from the property owner to an insurance company in exchange for the payment of premiums. The types of policies that are available to insure against risks involving liability are general liability policies; owners' policies, landlords' policies, and tenants' policies; homeowner's policies and renter's policies; and comprehensive general liability policies, which insure against both bodily injury and property damage.

Liability Policies

In general, liability policies protect an insured only if the insured is legally liable to pay a claim that results from an accident or other event that has occurred on the premises. There must be some unintended event, such as an accident, that causes injury before the protection of a liability policy can come into play. A liability policy does not cover claims that the insured is not legally obligated to pay, nor does it cover claims that result from a risk that is assumed by the person injured. Finally, there is no coverage if the injury was not caused by an accident.

Owners' Policies, Landlords' Policies, and Tenants' Policies

These policies can be purchased to insure up to a specified dollar amount for injuries that occur on either residential or commercial property. The property must be specifically identified in the policy itself, as well as the limits of the insurance for bodily injury.

Homeowner's Policies and Renter's Policies

A homeowner's policy provides comprehensive liability insurance for bodily injury and property damage in one policy. Such a policy covers accidents that result in personal injury or property damage to the extent that the homeowner is liable to pay for the loss. The type and amount of coverage depends on the covered risks.

Depending on the location of the property and the relevant state laws that regulate insurance companies, the risks that can be covered in a homeowner's policy may include losses due to fire, lightning, wind, or hail. Additional risks include losses that are caused by other weather elements, including snow and ice, as well as damage to heating and air conditioning systems. Homeowners can tailor the coverage to fit their particular needs and their pocket books. Additional specific coverage and all-risk dwelling protection can be provided for an increased premium.

Renter's insurance can provide coverage that is similar to that provided with a homeowner's policy. As with homeowner's insurance coverage, renter's insurance coverage can be extended to accommodate the particular needs of the renter to the extent that state laws and the renter's pocketbook will allow.

Additional Coverage

In addition to coverage for injuries that occur on the premises, coverage can be obtained to protect against lawsuits. In such cases, the insurance company will be required to provide a defense under its policy provided that the type of claim that forms the basis for the lawsuit is not specifically excluded under the policy. If the claim is a covered claim, the insurance company has the option to either provide a defense by its own attorneys or pay the costs of the insured's attorneys. If there is a dispute as to whether the insurance company has a duty to defend the lawsuit, either the insured or the insurance company may seek a declaratory judgment from a civil court to determine the parties' rights to a defense.

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