In insurance, liability is when the insured is found legally responsible for a loss. You could be held liable for something as simple as someone slipping and falling in your apartment and sustaining an injury, or being found at fault for damages resulting from a fire. If you're renting, it's important to keep in mind that landlords do not cover your liability, so their tenants can be held liable and face charges in these cases. Insurance can help protect you from these costs.
