Liability insurance is one of the most important insurance policies, but a large proportion of Dutch people do not have it. This insurance comes into play if you cause damage to others. Without insurance, one is theoretically liable with one’s entire assets.
Liability damage can quickly add up
Often a small oversight is enough to make us poor. A classic example is the forgotten cigarette that causes a fire. Or a flower pot falls from your hands while washing windows and hits a passer-by on the head. You will have to pay for their personal injury, in the worst case for your entire life, depending on the extent of the damage. And that damage can quickly add up: hospitalization, damages, or, in the case of the burning cigarette, an entire apartment complex.
The insured amount
And that immediately brings us to the most important question regarding the theme of “liability”: the insured amount, the maximum sum that can be paid out by the insurance. Many choose too little coverage. Some say one million euros is the absolute minimum, others even recommend three million euros.
Extensive coverage offers useful extras
An adequate amount insured is only a first step in choosing liability insurance. That is the basis that all companies offer. However, it does not mean that the insurance company will pay in any case. For example, some companies exclude so-called friend services. If you help your friend move and drop his expensive plasma TV, the insurance may not pay out. Or you lend your uncle your new digital camera and it is returned broken. There is a good chance that the insurance company will not pay either. Unless you have ensured that such cases are also covered when taking out the insurance. Insurance companies that offer such extensive coverage are usually well paid for it by means of a surcharge on the premium.
If the other party cannot pay
An extra that can also be useful is cover for the other party’s insolvency. As indicated above, many people do not have liability insurance. If one of them causes you damage and is unable to pay for it from your own resources, your own liability insurance could help if you were insured for this. However, you should first carefully consider whether you need additional insurance for such cases. Because before your own insurance intervenes, all other legal remedies must be exhausted. This means: you must first sue the other person and do everything you can to get the money from him.
Think of the children
With liability insurance, the policyholder usually has the option to choose single person cover or family cover. If you take out family cover, damage caused by the partner or one of the children is also covered. Because shards don’t always bring luck, right? For families with children, it is interesting to know that minor children are always insured on the parents’ policy, even if they do not live with them. Adult children only if they still live at home or live in rooms for their studies up to the age of 27. And did you know that resident parents, parents-in-law and grandparents are also part of the family?