A home insurance policy is important when it comes to protecting your roof and everything under it. But, did you know that it can do more than protect you from a break-in or flood damage? That’s right – it can also come to the rescue when your child’s ball shatters the neighbour’s window, or should Fido bite your repairman. Here, the Expat Insurance team shares the benefits of choosing a home contents policy that includes personal liability insurance, and what personal liability insurance covers.
Protect more than your belongings with home insurance
Buying home contents insurance is an investment worth making if you want to protect your home and everything in it that you value. This type of policy offers protection for any unexplained loss or disappearance of valuables in Singapore, whether it be diamond earrings, a camera or that rug you just couldn’t leave Jaipur without.
But, it’s important to know that a home contents insurance policy can provide more than the physical belongings within your walls. It can also offer protection against the financial burden of certain types of lawsuits.
You heard that right. Because home insurance policies usually include, or have the option to add on, personal liability insurance, you can rest easy knowing that mishaps that involve guests in your home are covered, as is any damage caused by your child outside of your home.
What is personal liability cover?
Personal liability insurance is a comprehensive umbrella policy. It protects you and your family against claims resulting from accidents or injuries caused to someone else or someone else’s property. This type of policy is usually included with or available as an add-on to home contents insurance.
This means that your home contents policy can cover you for more than just the loss of or damage to your belongings. It can also help defend you from lawsuits!
What does personal liability insurance cover?
While the chances of losing a lawsuit for a sum greater than what your existing insurance will pay are slim, it’s probably not a risk you’d like to take. Legal fees are costly. And, finding yourself in such a situation could put your assets in danger. Personal lliability insurance can protect you against the unexpected and costly claims and legal fees.
Here are five scenarios where this type of policy would come into play.
#1 Injuries sustained on your property
Personal liability insurance can protect you against the financial burden of a lawsuit filed by someone injured while at your home. For example, your child’s school friend slips on your deck and needs stitches. Or, a neighbour injures herself on your trampoline. Or, a delivery person trips on the shoes outside your front door and accuses you of negligence.
#2 Injuries caused by you
Any accidental injury you cause to others is also covered by personal liability insurance. For example, if you lose your balance on the sidewalk, knocking over a pedestrian and causing him to sprain his ankle. Or, if your bicycle collides with a stranger’s sending her to the emergency room.
What’s more, personal liability cover even extends to claims of slander of mental anguish filed against you. These types of accusations can create very costly legal battles. You definitely don’t want to be kicking yourself for not protecting yourself with personal liability cover.
#3 Injuries caused by your child or family member
Accidents happen a lot when it comes to kids. And, it’s reassuring to know that you won’t have to bear the financial burden of a lawsuit brought on by the parents of your child’s peer if an accident injury should occur at school or at the park playground. In fact, many international schools in Singapore even require personal liability insurance before children can be enrolled.
There are policies that even cover you for injuries caused by your pets. It’s a good idea to check with your insurance company to see if your policy covers certain animals or dog breeds.
#4 Damage caused by someone in your household
Say your son throws a baseball through the neighbour’s window. It shatters the window along with the porcelain dishware on the other side. You can rest easy knowing that your personal liability insurance will cover the cost incurred by the damage done.
#5 Damage on your property that affects someone else’s home
Whether your tree falls crashes through your neighbour’s roof or a fire that started in your home spreads next door, personal liability cover can offer you the protection you need in such a nightmare scenario.
What is not covered by personal liability insurance?
Your personal lability insurance will cover you against many different liability claims. However, there are certain claims that may not be covered. Here are four common examples.
#1 Liability that results from a car accident
If you accidentally run a red light and hit another car with two passengers who require medical treatment, your personal liability policy will not cover the costs. Instead, these claims should be covered by your auto insurance.
#2 Business-related liablitlies
Personal liability insurance does not cover activities related to your business. This is regardless of whether it’s an in-home or out-of-home business. You will need business insurance to cover any possible losses.
#3 Injuries to members within your household
While a guest who takes a tumble in your home is covered by your personal liability policy, that same tumble taken by your husband at home will not be covered. He will have to rely on his medical insurance for that.
Tip: International health insurance is an excellent choice for expats. It’s more comprehensive and offers long-term coverage for medical care while living overseas. It usually comes with high limits, a wide network and additional benefits such as travel, health screenings and dental coverage.
#4 Intentional damage or harm
Your teen, in a fit of rage, decides to throw the neighbour’s noisy drum set out the window. Will his defence be covered? Probably not, as it was international, not an accident or act of negligence.
How much personal liability cover do you need?
The amount of personal liability insurance you need depends on the value of your assets and your chances of being sued. Different policies offer different levels of coverage, and some providers offer add-ons at higher premium rates.
What’s more, personal liability insurance is available on a worldwide basis. This means that you and your family can be covered wherever you travel to.
Find out more
The insurance brokers at Expat Insurance are experienced in working with expats to determine the best coverage to suit their needs. They can work with you to ensure that everyone and everything under your roof (even the roof itself!) are adequately protected.
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