Definition

A reserve set aside to replace lost income during tough times. It acts as a backup to keep your daily expenses covered.

What to consider

  • Understand what types of damage are covered.
  • Review coverage limits.
  • Consider additional coverage if needed.

Real world scenarios

  • A landlord purchased property liability insurance to cover damages caused by tenants.
  • A business owner secured property liability coverage to protect against damage claims.
  • An individual with rental property ensured property liability was included in the policy.

Related terms

Insurance & Financial Protection