In the last post I spoke to you about home insurance, in this I continue to do so. At that time we saw that hiring home insurance is not mandatory, although it is recommended. One reason for hiring is on the insurance liability at home.
A few weeks ago a colleague told me how Murphy’s Law is ready to be fulfilled when you least expect it.
A boy was playing with the ball in the backyard of his house when it ran off hitting the windshield of a car that was driving down the street. From the shock, the driver lost control of the vehicle, going to the semi-empty tables of the corner bar. Fortunately, it was early Sunday and there were only a couple of clients who were injured.
Another event was related to the fire that had occurred in a semi-detached house due to a careless smoker. The fire spread to neighboring homes causing serious damage to the building and its contents.
In both cases, the damages do not occur by chance so someone will have to answer for their consequences. This article is about that, what it is and what home liability insurance covers.
What is the civil liability?
According to article 1902, civil liability is that of any citizen who by action and omission causes harm to another, intervening fault or negligence is obliged to repair the damage caused.
Therefore, for there to be civil liability, it is necessary that there has been damage to a third party. In addition, there must be some kind of guilt on your part and a relationship between your performance and the damage.
The obligation to repair the damage has as a consequence the economic impact that it can have on you. This capital loss will be directly linked to the severity of the damage caused.
In which cases may liability coverage be necessary for home insurance?
If you have liability insurance at home, you have a reason to sleep more peacefully knowing that behind you there is an insurer to solve the problem that you have caused your neighbor below by leaving the tap running.
Having civil liability insurance in the home policy seems to be the best answer to any eventuality that occurs in your home and that affects other people or things. But it not only covers damage to third parties caused by the home but also those caused by the inhabitants of the home.
In the events that I related to you at the beginning of the post, you have an example of the damage that can be caused:
#1. Material Damage
Those caused to objects, houses, or goods to which you or your home cause damage have this consideration. The car, the marquee, or the neighboring houses in the story would be the material damage.
#2. Personal Injury
As you well have assumed, it is about the damages, injuries, and expenses that you may have caused to people. Returning to the incidents of the presentation, it would be personal injuries caused to the customers who were on the terrace of the bar.
Now we will see how the coverage of the civil liability insurance in the home includes the acts caused by all those who live in the insured risk.
Property liability in liability insurance
There are many incidents whose origin is in the home itself or in its facilities. A ruptured pipe can cause significant damage to the neighbor downstairs or to the neighboring dwelling. But imagine if a flower pot or a tile falls and unfortunately hits a vehicle or a pedestrian.
The real estate civil liability insurance covers damages caused to a third party by the use of the home. Therefore, covered damages are those that originate in the building, its facilities, and the contents of the house.
These are in broad lines the coverage provided by real estate civil liability:
- Damages caused by the use of the house and those caused by the common elements of the building where it is located.
- Those events derived from the maintenance and repair work of the home provided that the necessary permits are in place. When the person who performs these works is a third party and is the cause of the damage, the civil liability insurance in the home remains in the background, and only in the absence of insurance or insolvency of the deceased will it come into operation.
If real estate liability covers damage caused by the use of the home, what happens when it is rented?
While this is essential coverage for the homeowner, it is also essential for the renter. This will have to respond to the damages caused by the content elements and in many cases, it will also have to do so for incidents caused by the facilities of the continent.
Family responsibility a guarantee that covers much more than your children’s mischief
Family responsibility not only covers the policyholder or the homeowner, but it also covers those people who live in the family home and are financially dependent on the insurance holder. This means that the insurance covers your spouse, children, domestic employees, and all those dependents who live in the house. In addition, the coverage is not limited to damages caused inside the home, also those caused outside.
These are some of the facts covered by family responsibility:
- The damages that you may cause that are not related to a professional activity,
- Damage is caused by sports or leisure activities practiced as an amateur.
- The possession of domestic animals, as long as they live in the house, ensures. But beware that it has limitations. For example, dogs of potentially dangerous breeds must have their own liability insurance, being excluded from this insurance. You should also be careful with pets, reptiles or big cats are not covered.
- The consequences derived from carelessness with the fire or the omission of the closing of a tap are also covered.
- If you like barbecues and invite friends and family, the consequences of food poisoning are also covered, of course, as long as you invite and do not charge for the food.
As you can see, family liability insurance covers you much more than the mischief of your children.
The locative civil responsibility, a guarantee for the tenant
You live for rent, you have gone away for a weekend, and when you return you find that you left the tap running. The water has overflowed and the damage is significant. And you have not only wet the neighbor below, in your house, but the water also reaches you over the moccasins.
If you have family liability insurance, you will not have problems to take care of the neighbor’s damages. But what about the damage to the home you occupy?
The leasehold liability coverage is intended to cover your liability to the homeowner when an accidental event that causes damage occurs. Usually, these damages are a direct consequence of fire, explosion, or the action of water.
How Much Does Home Liability Insurance Cover?
You will have noticed that both in property, family, or rental liability, home liability insurance provides coverage in all cases except when it is proven that there has been intent to cause the damage.
Also, like any other coverage, liability insurance has a limit. It is the capital that you have contracted and that will be reflected in the conditions of the policy. Subscribing a very tight amount may not be enough at the time of the claim, in which case the excess must be paid out of pocket. This is something that you have to take into account when hiring insurance.
On many occasions, determining who is responsible for a claim must be settled in court. This implies having legal coverage that is normally assumed by the insurer, who makes the lawyers available to you to help you solve the problem. The price that the insurer has to pay will depend on the success they obtain.
There are many events in human life that can cause harm to a third party. Experience shows that liability coverage is one of the most used on a daily basis in insurance. The events of material and personal damage to third parties related to the home are more and more frequent.
Home liability insurance is the mechanism with which to try to repair the damage caused.
It does not matter if you are the owner of the home or its tenant, in the article you have been able to see some of the risks to which you expose yourself. Lacking good home liability insurance certainly doesn’t seem like a good idea.
Home insurance is not mandatory, but if you appreciate the assets managed, I’m sure you’ll know what to do.
Why don’t you start by leaving us your answer to the question in the comments?
What capital do you have contracted for civil liability in your home insurance? Do you think it is enough?