Private Liability Insurance for Expats: Do You Really Need It?
Updated: Sep 24
If you’re new in Germany, you may still be wondering if you really need to get a private liability insurance. What does it really mean to have one? And what benefits would you get from it? At the end of this article, you will have more information about private liability insurance.
What does it mean to have a private liability insurance?
Accidents happen in the blink of an eye. It can be as mundane as accidently breaking your neighbor’s door or as serious as your teenage child setting fire at school. These unfortunate accidents, mishaps, or events can get you sued in Germany and you are liable for the damages.
In a nutshell, private liability protects you from claims or damages against you such as personal injury, property damage, or financial losses, whether intentional or not. When somebody makes a claim, your private liability insurance covers the cost of damages.
Most Germans consider this type of insurance as the most practical, useful, and important of the other optional types of insurance.
Here are some situations where private liability insurance proves useful in Germany:
You are riding a bike out of the driveway onto the cycle path and collided with another cyclist. He had a bad fall and unfortunately resulted in a fractured fourth cervical vertebra and got paralyzed from the neck down.
In addition to compensation for the pain and normal damages, you were also faced with recourse from the victim’s employer’s liability insurance association and increased needs amounting to €20,000 per month. The total damage was over €7 million.
Damage to Property
Going back to the teenage child who set fire in her school building with her friends in school after class, they left the premises believing they had put out the fire. Most of the building burned and the entire building was damaged severely after a massive gas ignition. On top of the surmounting renovation of the school building, the school had to rent out a temporary school while the construction is ongoing. The damage cost you €17 million.
Defence Against Unjustified Claims
For instance, your landlord blamed you for mould infestation in the apartment and implied there was no sufficient ventilation in the room. However, you are not guilty of anything as you always followed your landlord’s instructions for ventilation. Meanwhile, you suspect that it is due to defects in the brickwork that led to the infestation. In this scenario, the claims were fended off in two court instances.
In the scenarios above, they may be too farfetched, but they do happen and they could happen to anyone. We cannot control these accidents but having a private liability insurance can get you the peace of mind knowing that you are protected from such damages.
If you want to be covered, leave us a message and we’ll respond to you the soonest possible.