Personal liability pays for: the injured person’s medical bills, their lost wages if they claim income was affected by the injury, pain and suffering damages awarded by a court, and your legal defense fees — attorney costs, court filing fees, and settlement negotiations. All of this comes out of your single policy limit.
Standard liability limits in renters insurance start at $100,000 and go up to $500,000. The Insurance Information Institute confirms that the typical renter’s policy offers $100,000 minimum in liability coverage. MoneyGeek recommends carrying at least $300,000.