What does legal liability coverage in building insurance protect against?

Legal liability coverage in building insurance specifically protects against injury and damage for which the owner may be held legally liable due to negligence. This means that if a person is injured or if property damage occurs because of an action (or inaction) by the property owner, the legal liability coverage will provide protection.

For example, if a visitor slips and falls on a wet floor in a building because the owner failed to place a warning sign, the legal liability coverage would cover the claims made by the injured party. It essentially safeguards the insured against potential lawsuits or claims related to their responsibility as a property owner.

The other options refer to different types of coverage or scenarios that are not directly associated with legal liability. Natural disasters typically fall under distinct types of property coverage rather than liability. Damage during renovations can often be addressed by specific renovation or contractor liability insurance. Infringement on neighbor's property rights can involve different legal issues unrelated to the concept of negligence that defines liability coverage.