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Real Estate Glossary

What's a Liability Insurance?

Liability insurance is a type of insurance that helps protect individuals and businesses from financial loss in the event that they are found liable for damages or injuries caused to someone else. For example, if you own a rental property and a tenant is injured on the property, your liability insurance would help cover the costs of the tenant's medical bills. This can be a vital protection, as legal fees and damages can add up quickly and can be financially devastating.