Medical Coverage is NOT the Same as Liability Coverage!

Insurance Medical Payment

What is Medical Payments coverage?

Medical coverage protection provides coverage for a reasonable medical expense when a third party sustains injury while on the insureds premises.

What is the difference between this and Personal Liability coverage?

With the personal liability coverage you are being sued. A claim is paid out if you are legally obligated to pay it. With medical payments you are not being sued. Basically in a nutshell if an incident happens on a small scale it will fall under medical coverage payments. If someone cuts themselves and it requires stitches the insurance claim would pay for the emergency room visit. Personal Liability claims happen on a much larger scale. If the payout for the medical expense is over $5,000 it will fall into the personal liability coverage. The most common coverage amounts for this coverage are:

  • Total Coverage
  • $1,000
  • $2,500
  • $5,000
  • Average Annual Cost
  • Usually included at no additional cost.
  • $5 to $10
  • $10 to $15

As you can see this coverage is extremely inexpensive so you would be silly not to maximize this.

Claim Situation

Bill just moved into an apartment and part of the requirements for moving in were to obtain renters insurance. He got several quotes. Bill ended up with an affordable quote but because he was being forced into getting this insurance he went with the cheapest option. His policy limit on medical coverage payments was $1,000.

After settling in Bill decided to have some friends over for a house warming party. One of his guest brought over food that required being heated up. While using the stove, Bill’s guest severely burned themselves. They immediately went to the emergency room to get medical treatment. A couple weeks later Bill’s guest provided him with the emergency room invoice, totaling $2,345.


After submitting all of the documentation to his insurance carrier Bill learned that he was only covered up to $1,000. Bill had to pay the remaining $1,345 out of pocket.


It is impossible to predict when incident will occur and how much it will cost. This is exactly the reason you should maximize this coverage. For an additional $15 a year you can have the peace of mind you deserve. When reviewing this coverage with your agent it is also referred to as Coverage F.

Here is where you can find medical coverage on your dec page: