What is liability insurance?
Through negligence, you may cause damage to a third party, or claims for damages may be presented against you. Home insurance's liability insurance provides cover for you and persons living permanently in the same household against such situations.
The validity of liability insurance depends on whether the insurance for your home contents is valid. If you do not have insurance for your home contents, or the insurance has expired, liability insurance is not valid. It's therefore important to ensure that your insurance cover is up to date.
Is liability insurance necessary?
A private individual's liability insurance is necessary when you cause loss or damage to others for which you are liable by law. Liability insurance included in home insurance covers injuries or damage caused to accidentally to another person or their property. Liability insurance has a deductible of 150 euros. The maximum compensation is 170,000 euros.
If you do not have liability insurance and cause injury or damage to another person through your negligence, you will be liable for the damages in full on your own. Liability insurance is offered with both comprehensive home insurance and standard home insurance. Pohjola Home Insurance automatically includes liability insurance unless you agree otherwise when buying the policy.
Liability insurance is one of the essential types of insurance for entrepreneurs
Situations may arise in your business operations where you are liable to compensate damages incurred by another party. Liability insurance covers bodily injury or material damage caused by your company’s operations.
Learn more about liability insurance for businesses
Do I need liability insurance for my buy-to-let home?
It's also advisable to take out liability insurance for a buy-to-let home. Lessor’s general liability insurance covers bodily injuries and material damage caused to a third party for which you are liable by law as the owner of the home.
The need for insurance depends on the number of buy-to-let homes owned by you and persons living in the same household with you. If your own home is insured with Pohjola Home Insurance, the liability insurance also covers one buy-to-let home owned by you. In this case, you do not need separate lessor’s liability insurance for your buy-to-let home.
Do you own more than one buy-to-let home? In this case, you need a separate lessor's liability insurance for each buy-to-let home you own.
Learn more about insuring a buy-to-let home
What does liability insurance cover?
Liability insurance as part of home insurance provides compensation if you as the policyholder or a person living permanently with you in the same household accidentally causes loss or injury to other people or their property.
Compensation is payable under liability insurance provided that you are liable by law for the loss or damage and did not cause it deliberately or through gross negligence. Liability insurance will provide compensation for damage caused by your child under 12 years of age, even if the damage was caused deliberately.
Liability insurance may provide compensation if, for example:
- you drop a valuable glass object in a shop, and the object is damaged
- you accidently knock over an expensive home cinema system while visiting your friend
- your child scratches a neighbour's parked car with a bicycle
- your child accidentally drops a computer while visiting a neighbour
- a passer-by slips on the pavement of a house you have insured, causing the passer-by medical treatment expenses
- your dog bites a passer-by, resulting in medical treatment expenses
- you accidentally cause water damage in the housing company in which you are a resident, in which case liability insurance may cover the damage to the building’s structures.
What is not covered by liability insurance?
Home insurance's liability insurance covers many types of losses, but certain things are excluded from coverage. Liability insurance does not cover, for example
- loss or damage caused wilfully or through gross negligence
- loss or damage caused to the policyholder or their family member
- loss or damage caused to an item or a vehicle borrowed by you or your family member
- loss or damage caused with a motor vehicle in traffic, a watercraft subject to registration or a sailing boat longer than 5.5 metres.
Price of home insurance's liability insurance
Home and liability insurance are automatically included in the price of Pohjola Home Insurance. In turn, the price of home insurance depends on your personal information, the insured home, the covers you select and the deductible. You can easily compare in our online store how different covers, maximum sum insured and deductible affect the price of the insurance.
Calculate the price and buy Pohjola Home insurance
Where is liability insurance valid?
Home insurance's liability insurance is valid in the Nordic countries. If you travel outside the Nordic countries, we recommend that you take out Pohjola Luggage Insurance. Our luggage insurance includes travel liability and legal expenses insurance.
Learn more about Pohjola Luggage Insurance
Did you have an accident? How liability insurance will help you
If you cause loss or damage to another person or their property, we will determine your liability on your behalf. After a loss has occurred, submit a loss report under your liability insurance instead of settling the matter personally.
In the loss report, describe the event in as much detail as possible and give your own opinion regarding your liability, and whether you agree to pay damages. Your loss report should also include the name and contact information of the party who suffered the loss so that we can ask them for additional information if necessary.
Home insurance's legal expenses insurance
Home insurance also always includes legal expenses insurance unless otherwise agreed when buying the policy. Legal expenses insurance covers legal expenses and litigation costs.