Family liability insurance — the “glad you have it” cover

Family insurance comes in many forms, often referred to as personal or private liability cover. Its importance should not be underestimated. It protects you, your household members and even your pet against damage caused to others — however unintentional. We’ve rounded up the key questions and answers to help you understand how it works.

How does family insurance work?

Family insurance covers your civil liability and that of your family members for damage caused by accident, carelessness or negligence to third parties in your private life. This relates to non-contractual (third-party) liability. In other words, it covers your liability towards parties not included in your insurance contract.

This counterparty can be anyone. Your neighbour, a long-time friend or a complete stranger. In practical terms, the insurance will cover the damage caused to this person by you, your partner, your children or even your dog or cat. Both damage to property, such as a car or home, and personal injury are covered.

Is it compulsory to take out family insurance?

While compensation for damages or injuries to third parties is required by law, taking out family insurance is not. Nevertheless, this is highly recommended. Whether you have the necessary insurance or not, if your part in the claim is proven, you will be obliged to compensate the other party anyway. You therefore have every advantage from having a guaranteed financial safety net.

After all, accidents happen when you least expect them. It’s a cliché as old as the hills, but one that is confirmed countless times every day all over the world. As soon as someone outside your own household is affected, family insurance proves invaluable.

Take the following possible scenarios for example:

• You’re riding your bike through the park and accidentally collide with a pedestrian. He falls and breaks his wrist.
• Your son or daughter is playing with a drone, and it crashes into a car or through a neighbour’s window, causing considerable damage.
• Your dog escapes your garden and bites another passer-by’s dog.
• You have a party tent in your garden that is not properly anchored in the ground. A strong gust of wind blows the tent into your neighbour’s car.
• …

The chances of any of the above situations happening often in your life are slim. Nevertheless, these scenarios are so commonplace and can occur so quickly that just once is enough to leave you with serious financial consequences.

For example, the repair costs of a broken window may not be too bad, but it becomes a different story when there are permanent injuries and lifelong care costs. In other words, family insurance can save you a lot of unnecessary (financial) headaches in the future.

Which cases are covered by family insurance (and which are not)?

Cover from most insurers typically includes:

• Property damage: damage to the property of others
• Bodily injuries: costs of medical treatment and compensation for injuries to third parties
• Damage caused by children
• Damage caused by pets

Depending on the insurer and the policy you choose, the scope of cover may vary. For example, you may also be covered for damage caused by a domestic helper, or the insurer may contribute to legal costs in the event of legal proceedings.

Conversely, certain things may also fall outside the basic cover. For example, damage to your own contents or injuries to insured family members are not covered by family insurance as standard. Fire or smoke damage to neighbouring homes caused by a fire in your home may also be excluded from the cover.

What if something happens abroad?

It is required by law that the terms of a Belgian family insurance policy are valid in Europe and in the Mediterranean countries at a minimum. Apart from that, certain insurers also offer worldwide cover. Some countries may not be covered. If you are planning a longer trip, such as a trip around the world, it is advisable to review the terms and conditions of your family insurance again with your insurer.

What does family insurance cost in Belgium?

Of course, the costs of family insurance vary depending on the insurer and the chosen insurance package. On average, the costs are between 60 and 120 euros per year (source). The factors that have the greatest influence on this price are:

• The number of insured persons: are you single or do you have a family of four that you wish to insure?
• The amount to be paid in the event of a claim: if you wish to receive a higher amount in the event of a claim, the cost of the premium will also increase
• Any additional insurance, such as legal assistance

Please note that most insurance policies have an excess, sometimes also referred to as a deductible. This is the amount you still have to pay yourself in the event of a claim before the insurance covers the rest of the costs.

Suppose you have to have your unfortunate neighbour’s car repaired. Of the total cost of 3,000 euros, for example, you will have to pay 200 to 250 euros yourself. The remainder is covered by the insurer.

In the event of personal injury, the excess may be waived entirely. So compare in detail the different proposals that come your way.

What if an accident happens?

Once your family insurance is all set, all you need to focus on is the administrative side. After all, you must first notify your insurer of any damage to third parties. How does it work in practice?

• Contact your insurer as soon as possible after the incident
• Most insurers work with an (online) claims form that you fill out yourself and return to them
• Record the details of all persons involved and always collect sufficient supporting documents (photos, witness statement, etc.)

Be sure to keep a copy of the completed form for yourself afterwards

Are you already familiar with Ethias’ family insurance?

Now that you are up to speed on the ins and outs of family insurance, you may already be thinking about the next step. As close partners of Ethias, we would like to introduce you to their various interesting insurance solutions on behalf of Keytrade Bank, including Private Civil Liability Insurance.