What is covered by personal liability insurance?
Personal liability insurance protects you when:
- Someone is injured on your property; or
- If you accidentally damage someone’s property or belongings; or
- You accidentally damage your rented property; or
- A person (including housekeepers, au pairs and gardeners) or pet that’s a part of your household accidentally injures another person or pet. For example, if your dog bites someone and the injured person holds you responsible for their doctor’s bills.
Personal liability cover will cover you if you are held legally responsible to compensate someone for their loss. Whether it’s medical bills or the repairing or replacement of their things. It will also cover the cost of your legal fees.
What is not covered by personal liability insurance?
This depends on the specific circumstances of your claim and your insurer. But here are a few common examples of where personal liability won’t cover you:
- Where an injury occurs on your property by someone who isn’t a part of your household; or
- Injury or property damage caused by business activities; or
- Personal injury to yourself or a member of your household; or
- Damage caused by your car (this is covered by third party liability on your car insurance); or
- Anything as a result of illegal activities; or
- Injury or property damage done on purpose.
How do I buy personal liability insurance?
Most building and contents policies automatically include a certain amount of personal liability insurance. You will also be able to increase the amount of liability coverage you have for a small fee.
How much personal liability cover do I need?
Instinct might tell you to go for the highest amount of cover that your insurer offers. But this might not always be affordable. The more cover you buy, the higher your premium will get. The safest thing to do is to buy as much cover as you can comfortably afford. Keep in mind that everyone’s situation is different so pick an amount that takes your own situation into account.