What is 'fire legal liability' coverage?

Fire legal liability coverage provides protection against liability claims that arise from fire damage to premises that a person or business rents or occupies. This coverage is essential for tenants because, while they may not own the property, they can still be held responsible for damages caused by a fire due to their negligence or actions. It typically covers the costs associated with legal claims from landlords or third parties when a fire results in damage.

For example, if a tenant accidentally leaves a candle burning, causing a fire that damages their rented apartment or an adjacent unit, fire legal liability coverage would help pay for the extensive damage claims from the landlord or affected property owners.

The other options do not accurately describe what fire legal liability coverage entails. Protection for personal property from fire damage focuses on personal belongings rather than liability. Coverage for construction sites from fire pertains to a different insured risk, and a benefit for small business owners to prevent fires does not reflect the liability aspect relevant to fire legal liability coverage.