Tenant injuries, for instance, may be a concern for landlords. Let's say a loose handrail causes a tenant to fall. You could be held responsible for resulting injuries, according to the Insurance Journal, if you were found negligent in maintaining the property — or even if you just failed to warn the tenant of a potential safety risk.

If that were to happen, your landlord liability coverage would likely kick in to help pay your legal defense and help cover court judgments made against you, up to the limits stated in your policy. Defense costs aren't subject to the liability limits, just the court judgement.

Other situations could also expose you to liability, according to the Insurance Journal. If you fail to provide proper security for your tenants, for instance, or if your tenant engages in unlawful behavior and you fail to take measures to stop it, you could be held liable. Landlord liability coverage can usually help protect you in these and other similar scenarios, up to the limit that's set in your policy.

Having a landlord insurance policy with liability coverage can go a long way toward giving you the peace of mind that comes with knowing you have a safety net in place, just in case.