What is tenant liability insurance?

Tenant liability insurance is specifically designed to protect landlords from damages that may be caused by tenants during their occupancy. This type of insurance typically covers incidents such as accidental damage to the property or injuries that occur as a result of the tenant's actions. For landlords, having tenant liability insurance is important as it helps mitigate financial losses that might occur if a tenant causes significant damage or a liability claim arises.

While insurance covering the landlord's property damages may seem similar, it doesn’t specifically focus on the actions of the tenant. Instead, tenant liability insurance is directed more toward protecting landlords from the unpredictabilities associated with tenant behavior. This nuanced focus highlights why the correct answer pertains specifically to the protection of landlords from damages instigated by their tenants.