You've got your belongings covered - but what happens if something goes wrong that affects your landlord's property or your neighbours? That's where liability coverage comes in, and it's one of the most important (and often underestimated) parts of your tenant insurance policy.
Liability coverage protects you financially if you're found legally responsible for accidentally damaging your rental unit, injuring someone in your home, or causing damage that spreads to neighbouring units - including legal fees and settlements if it comes to that.
Accidents Happen... Even to Careful People!
You don't need to be reckless for things to go wrong. Here are some everyday scenarios where liability coverage could kick in:
🛁 A bathtub overflows while you're asleep or out. Water damage is one of the most common claims in rental buildings. If water seeps through the floor and damages the unit below, you could be on the hook for thousands of dollars in repairs.
🍳 A kitchen fire gets out of hand. Even a small stovetop fire can cause smoke and structural damage beyond your own unit. Damage to the building itself - walls, ceilings, floors - is something your landlord could legally pursue you for.
🤕 A guest slips and injures themselves in your unit. A serious personal injury claim can escalate quickly once legal costs, medical expenses, and lost wages are factored in.
🔥 Your candle or space heater causes a fire. Fires that start in a tenant's unit and spread through the building are a serious liability exposure - and rebuilding costs in a multi-unit property can be enormous.
Why We Recommend $2M Over $1M
Most tenant policies offer $1M or $2M in liability coverage. At first glance, $1M sounds like a lot - but a single water damage event affecting multiple floors, common areas, and neighbouring units can easily surpass that once all parties are accounted for. Add legal defense costs on top, and the gap closes fast.
A few reasons the $2M limit is worth it:
Construction and legal costs are rising. Coverage that felt sufficient a few years ago may not stretch as far today.
Your landlord may require it. Many landlords and property managers now require $2M as a condition of the lease.
The cost difference is minimal. Upgrading from $1M to $2M typically adds just a few dollars per month - a small price for significantly more peace of mind.
| $1M Liability | $2M Liability |
Covers serious water or fire damage | ✅ | ✅ |
Covers personal injury claims | ✅ | ✅ |
Covers complex multi-unit incidents | Possibly | ✅ |
Meets most landlord requirements | Sometimes | ✅ |
Typical monthly cost difference | — | ~$2-3/month |
Easy to Update - Online, Anytime
If you're currently on a $1M limit and want to upgrade, you can increase your liability coverage directly through the APOLLO customer portal - no phone calls needed. It's also worth reviewing your limit when your policy comes up for renewal, to make sure your coverage keeps pace with your needs.
Questions about your coverage? Reach out to our team - we're happy to help.