When the topic of insurance comes up, you often hear that both home contents insurance and liability insurance are essential. But why are they so important, and what exactly is the difference between the two? You'll find out everything you need to know in the following article.

Home contents insurance, liability insurance -
That's where they differ.

Before we go into detail, here's the difference in one sentence: Home contents insurance protects your belongings, i.e., all valuables and movable items; in contrast, private liability insurance protects you if you cause damage to other people or their property.

Home contents insurance: Coverage for damage to your own belongings

Home contents insurance protects you against damage, destruction or loss caused by, among other things,

1. Fire,
2. Lightning strike
3. Explosion and implosion,
4. Burglary, vandalism following a burglary,
5. Water,
6. Storm and hail
7. This is therefore a so-called property insurance policy, whereby "property" includes all movable items such as valuables, furnishings, household goods, and consumables. However, the insurance does not cover the costs of damage to the building or to permanently installed fixtures such as tiles, bathtubs, doors, windows, or floors. Such damage is usually covered by building insurance, which is typically taken out by the landlord. If you, as a tenant, cause damage to fixed parts of the building, your personal liability insurance will protect you.

Private liability insurance: Coverage for damages to third parties or their property

Private liability insurance protects you against unjustified claims for damages and covers justified claims for damages; this includes personal injury, property damage and financial losses.

1. Personal injury claims, e.g., compensation for pain and suffering, loss of earnings, home modifications, funeral expenses
2. Property damage, e.g., repair costs, replacement costs, damage to rented property
3. Financial losses resulting from personal injury or property damage, e.g., loss of earnings for self-employed individuals

Minor damages like broken laptops or similar items are of secondary importance; far more significant is the protection afforded to others if you cause injury. That's why personal liability insurance is considered even more crucial than home contents insurance. If, for example, you cause harm to another person, the resulting costs can be immense, quickly exceeding the value of your entire household contents many times over. These costs often reach six or even seven figures, meaning you could be in debt for life.

Get here your insurance coverage.