Fire damage legal liability means that the insured party is responsible for any fire damage caused to rental property. Because the rider designates legal liability, it must be determined that the insured caused the fire for the coverage to apply.
Business Coverage Applications
Fire damage legal liability applies to commercial or industrial space and equipment that a business owner rents for a business and to residential, commercial, or industrial space and equipment that a business owner leases. The coverage can extend into rented garage space or any other property under the insured’s control.
Liability Coverage Amount
Determining the exact value of the rented space and equipment is essential to ensure that the legal liability of the fire damage covers the total amount. For example, if a lessee’s fire destroyed a $100,000 rental space, a $50,000 rider would not fully cover the damages caused to the rental property.
