Can dwelling policies provide personal liability coverage without any additional action?

Dwelling policies, which are primarily designed to cover rental properties or homes that are not owner-occupied, do not automatically include personal liability coverage. Instead, personal liability coverage must be obtained through an endorsement. This means that policyholders need to specifically request this additional coverage to protect against claims of bodily injury or property damage that they may be held liable for in relation to their dwelling.

This distinction is important because it highlights the fact that dwelling policies focus on providing property coverage for the physical structures and sometimes personal property within them. Liability coverage involves a different risk management approach, which is why it requires a specific endorsement to be added to the policy. Proper understanding of these nuances ensures that individuals can adequately protect themselves from potential legal claims arising from incidents occurring on their property.