The most important benefits of private liability insurance - financial expert gives advice

The most important benefits of private liability insurance - financial expert gives advice

According to a report by amp.focus.de,

Private liability insurance (PHV) is one of the most important insurance policies that everyone should have. It protects you from financial burdens if you accidentally cause harm to someone else. A report from Finanztip names four important points that a good PHV should cover.

1. Die Versicherung sollte Schäden bis 50 Millionen Euro abdecken, sowie mindestens zehn Millionen Euro je geschädigter Person. Dies ist wichtig, da gesetzliche Haftungsansprüche keine Obergrenze haben und Schadensersatzforderungen schnell sehr teuer werden können.

2. A good PHV should also cover bad debts to prevent you from being stuck with the costs incurred if the person who caused the damage cannot pay.

3. In the event of accidents within the family, the PHV should cover recourse claims from social insurance providers in order to protect both partners.

4. With the Best Performance Guarantee, you should always receive the best possible performance on the market without having to change insurance.

However, in Germany, a good 17 percent of households do not have private liability insurance, which can lead to significant financial risks.

Inadequate liability insurance can lead to significant financial burdens, especially if high compensation claims are made. It is therefore advisable to regularly check whether the current PHV offers sufficient protection and whether there are cheaper options on the market. The recommendations mentioned by Finanztip - Friday (Relax), the liability insurance company (Simply better) and Degenia (T23-Optimum) - offer a good basis for comparing insurance.

It is crucial to carefully review the PHV and update it if necessary to ensure comprehensive protection.