Why you should not do without private liability insurance

One, two, three and it is already happened. You are standing on the sidewalk and want to quickly catch the streetcar on the other side. In doing so, you overlook a cyclist coming from the left. He skids and falls. The bicycle has an eight in the tire, the cyclist has severe bruises and a broken hand. The cyclist can claim from you not only the damage to the bicycle, but also the costs of his treatment and compensation for pain and suffering. Depending on the extent of the injury, even its lifetime loss of income. In this way, several tens of thousands, sometimes millions, of euros can add up very quickly, which can destroy an existence. Here you can cover yourself with private liability insurance.

Private liability – Who needs you?

Although personal liability insurance is not compulsory in Germany, it is necessary for EVERYONE to have in order to protect their own belongings. The name comes from §823 of the German Civil Code and states that in Germany everyone is liable without limitation for damages to third parties with their private assets – regardless of whether it is their financial or material assets. Special liability risks such as herding and using other people's animals, owning other people's keys (especially for the workplace), renting vacation homes or sideline activities such as volunteer work, high-risk sports or nanny work can be specified by contract extensions. So that you can continue to fulfill your own life goals, the conclusion of a private liability insurance is indispensable.

What is insured in the liability?

Something can always break quickly unintentionally. Starting with property damage, such as a window that breaks when you close it in a hurry, or property damage and personal injury. In these cases, the private liability will pay for the damage caused by you. Before the insurance company settles the claim, it first checks whether and to what extent the claims for damages made against you are justified.

Only if the claims are considered justified and you have not acted against the insurance conditions, for example, from intent, the damage is covered. In the event of property damage, the cost of repairs will be paid for. If the item has lost value after repair, the difference is also covered. In the event of a total loss, the injured party receives the current market value of the insured item.

So, for example, if the bicycle in the example given at the beginning had been completely broken, the injured party would have received the amount needed to replace it. If there is a personal injury, for example, medical and hospital costs, compensation for pain and suffering or the consequences of the accident, such as occupational restrictions or permanent damage, are covered.

Private liability insurance: at what point you are no longer insured through the family?

When you are a child, you are usually covered by family rates. But at what point do you need your own private liability insurance to avoid having to settle claims yourself? Basically, family liability insurance must be in place to be covered as a child. If, for example, a singles insurance was taken out, children are not insured as well. With family insurance itself, there are some reasons for dropping out. Co-insured is usually during the initial training or. studies and in the federal voluntary service. Some insurances even protect up to the third training and during the waiting periods with temporary jobs of up to one year. Other insurances terminate the child coinsurance already earlier or at a certain age. The only thing that helps is to check the small print of your parents' personal liability insurance policy. As soon as you are employed, you have to take care of your own private liability insurance.

The private liability insurance should be adapted to your individual situation in any case and be extended if necessary. You ask yourself what you have to take into consideration?

Important points would include:

• Loss of claim: If you suffer a damage and the causer has no insurance and no money, then your insurance will reimburse you for your damage.
• You help other people and if something gets broken, it should be insured? Then you need the area of courtesy damages.
• If you occasionally borrow things? If these are broken or lost, this should be insured?
• Which sport do you practice? Kitesurfing? Windsurfing? Do you row or participate in bicycle races??
• Do you have wild animals?
• Should damage to hotel rooms or rented vacation properties be covered as well?
• Do you rent cars abroad?

You see there is a lot to consider and sometimes it is also misleading. For example, some plans cover borrowed items, but only if they break and not if you lose them or they are stolen from you. Therefore, beware, there are many special features in the fine print. We help you!

Does the liability insurance cover damages caused by alcohol consumption??

Most of us have certainly drunk a little too much at one time or another. Anyone who has ever experienced this knows how much alcohol consumption can change your consciousness. The ingestion of narcotics, whether intentional or unintentional, also means that we are no longer in control of our senses. If damage occurs, the question often arises as to who is liable for it or who will bear the costs of the damage incurred.

First of all, in the event that narcotics are taken unknowingly: This is case dependent, as the defendant can be accused of negligence. If, for example, you get behind the wheel of a car with the knowledge that your circulation is not quite up to it, §316 StGb applies. It states that it is forbidden to drive a car under the influence of narcotics or alcohol. Negligence is also punished. So be very careful in such cases! In the case of insurance, a distinction is normally made between gross negligence and intent. Basically, all intentional acts are not covered by all insurances. In the case of grossly negligent acts, there may be a dispute with the insurance company in various cases.

If a person consumes too much alcohol, they may not have been competent to commit a tort at the time the damage was caused. This would normally result in no legal liability for the damage caused – but again, there are loopholes in the law that can mean the insurance company doesn't pay out! In common private liability insurance concepts there is no exclusion or other restrictions of the insurance coverage on the subject of alcohol consumption. The individual case must be considered concretely, however, in order to be able to make a valid statement. A close check of the insurance policy by an expert is advisable.

Note: Liability insurances only pay if there is no intent. If the policyholder acts intentionally, the liability insurance does not have to and will not compensate the damage incurred. Negligence and gross negligence are usually covered.

How much does a liability insurance cost?

In private liability insurance, a distinction is made between single tariffs and family tariffs. In the singles tariff only the policyholder is protected. In a family tariff, other persons are also insured, such as the spouse or the children. For families, it is advisable to take out a joint insurance policy, because this is usually cheaper than individual insurance policies for each family member. High-performance tariffs for families cost approx. 70 – 80 € per year. Good single rates are available from as little as €50 per year.

Do you have any questions?

You still have unanswered questions, your liability insurance seems too expensive or you want to take out your first own tariff? Then secure professional support from one of our mitNORM consultants today, so that you can really find an insurance policy that suits you best. In a personal conversation, you will analyze your individual situation and your wishes, which the liability insurance should fulfill. Your consultant will then find the right offer for you. You know what the best part is? All of our recommendations are 100% objective, transparent and in line with consumer protections. You can therefore rest assured that you will only receive suggestions that really suit you. Secure your consultation now.