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You have to be liable for damage caused by your own pet, even if you are not at fault
Photo:
Olga Yastremska / Pond5 Images / IMAGO
A brief moment of inattention is usually enough: you sit on a friend's glasses, accidentally drop someone else's laptop or damage a friend's expensive table while moving. According to the law, you are obliged to cover the costs of the damage caused. If you have previously taken out private liability insurance, this will cover you. It protects people from getting into financial difficulties and covers the costs.
Nevertheless, according to a survey by the comparison portal Check24, almost one in five Germans has not taken out liability insurance. A degree is not legally required. Here you can find out why you shouldn't do without liability insurance and what you should pay attention to when taking out it.
What is personal liability insurance?
Personal liability insurance is one of the most important types of insurance. It is intended to protect policyholders throughout their lives against damage they cause to other people's property. However, the insurance cover not only covers property damage, but also personal injury and financial loss.
Material damage
occurs to someone else's property. The insurance will cover the repair or reimbursement.
Personal injury
occurs when a person is injured, for example in an accident. The insurance covers treatment costs or possible claims for damages (further examples: compensation for pain and suffering, pension payments, additional costs for nursing staff).
Financial losses
are damages that result in financial disadvantage for a third party. A financial loss or loss of profit.
“Private liability also protects against claims for damages that may be wrongly made,” says Claudia Frenz from the Association of Insured Persons (BdV). “So it’s also a kind of legal protection insurance.”
Family liability insurance
also
offers the option of covering the entire family in one contract. Children are not considered capable of committing crimes until they are seven years old and are therefore not liable. Children in training or studies are also insured through their parents until they reach the age of 25 - provided their income does not exceed a certain limit.
What does personal liability insurance cover – and when does it get tricky?
The insurer pays for damage caused by the insured person to a third party. In this country there is a legal obligation to be liable. In many cases the situation is clear - but not always:
»A classic case of controversial damage can be so-called rental property damage. Good liability insurance also reimburses damage that I cause in my rented apartment," says Christian Biernoth from the Hamburg Consumer Center. What matters, however, is what is written in the small print. »Some insurers also pay for damage to the fitted kitchen given to me by the landlord. “Others, however, don’t pay in such a case,” says the expert.
Things also become tricky when damage is caused by people who are incapable of committing a crime, such as children under the age of seven (under ten in traffic) or adults with limited mental abilities. “You cannot be held responsible for this damage, so you do not have to be responsible for it under liability law,” says expert Frenz from the BdV. In fact, insured people can also make provisions for such cases: “However, this is only possible if the contract also includes damage caused by persons incapable of committing a crime. A good insurance contract provides for this,” says Frenz.
When does private liability insurance not pay?
Private liability insurance generally does not cover your own damage. Damage caused intentionally is also not insured. “So if I intentionally cause damage to someone, I have no insurance coverage,” says Biernoth.
Private liability insurance also tends not to cover damage caused by relatives who live with the policyholder. “Which services are insured and which are not are always stated in the insurance conditions,” says Frenz.
What happens if the person who caused the damage is not insured?
A person accidentally spills cola on their new smartphone and the device is no longer usable. But the person who caused the damage has neither liability insurance nor can they pay for the damage out of their own pocket. In such a case, you may be left with the damage. Christian Biernoth therefore recommends so-called bad debt coverage, an additional component in private liability insurance. »My liability insurer would then step in and reimburse me for the damage. So it’s worth checking whether my policy has this component.«
How can I extend my insurance?
It is possible to insure the loss of your own apartment key. If the entire locking system subsequently has to be replaced, it can be costly for the person who caused the damage. »It's worth taking the policy into your hands and checking whether there isn't a better contract. This is particularly true for old contracts, as not everything is insured with them," says Biernoth.
In the past, insurers also often excluded so-called courtesy damages - for example caused by unpaid moving helpers. “The Federal Court of Justice has now decided that private liability insurance must be provided if the perpetrator acted as a courtesy and caused damage,” says Frenz.
What coverage amount is recommended?
Although personal liability insurance sometimes covers major damage, it is not particularly expensive. There are already good contracts for between 50 and 100 euros annually. Claudia Frenz from the BdV explicitly recommends concluding a contract. "Damage can have massive financial consequences, especially if it involves personal injury, for which you may have to pay lifelong pension payments." The sum insured should therefore be at least 15 million euros - a flat rate for property, personal and financial damage.
What other types of liability insurance are there?
There are different types of liability insurance in Germany. In addition to the private liability insurance described in detail, there is also:
Motor vehicle liability insurance
covers
property damage, personal injury and financial damage that you cause to others with your car. In contrast to private liability insurance, a conclusion is mandatory in Germany.
Home
and landowner liability insurance
. It is intended to insure house and property owners against the financial consequences of damage caused to their property or the property - for example, if a scattering and clearing obligation was neglected and people were injured as a result and then made claims for damages.
Pet owner liability insurance
:
You have to be liable for damage caused by your own pet, even if you are not at fault. “In many federal states there is even a legal obligation to complete,” says Frenz.
Water damage and oil tank liability insurance
can
be particularly important if heating oil leaks into the ground and contaminates the groundwater. In this case, there is a risk of high damage, which the insurance company will then cover.
Professional liability insurance
covers the individual risks of professional groups, such as doctors, lawyers and tax advisors.
Civil servants or employees in the public sector can also include
service or official liability insurance
in their private liability insurance in order to protect themselves against claims from their employer.
Builders' liability insurance
is
intended to protect builders from the costs that arise from damage to property and personnel on and because of the construction site.
Hunting liability insurance
pays
out if claims for damages are justified. It can happen that a hunter causes damage to other people or their property during his activity. Insurance is required by law.