When we talk to our customers about liability insurance, whether for auto, home, or business, the subject seems rather vague, and many customers even question the extent of this coverage.
Assurances Multi-Risques would therefore like to provide you with further information about this coverage—which we believe to be one of the most important aspects of your insurance policy.
*In this article, we will focus solely on home insurance, but don’t worry, we will tell you more about auto liability insurance and business liability insurance in the coming weeks.
What is homeowner’s liability insurance?
Whether you live in an apartment, own a house or cottage, or even an income property, you have civil liability insurance as part of your home insurance policy. This insurance is required by law, and in Quebec, it is governed by the Civil Code of Quebec. It will protect you if you are held liable for unintentional damage caused to someone else.
So, if you live in an apartment and have installed your dishwasher incorrectly, causing significant water damage to the apartment building and the apartment below yours, you will be liable for the damage under civil liability. The same applies if someone is injured on your property.
Here are some other examples of events that your liability insurance may cover:
- Your cat scratches another child and damages their vision;
- Your child plays with matches with friends and causes a fire that destroys the entire building;
- While traveling, while playing volleyball, you accidentally cause another person to suffer a concussion;
- You are staying at a hotel and cause significant water damage;
- A child drowns in your pool while visiting your home.
In other words, liability insurance does not cover you for damages you suffer, or those suffered by your partner and children, but rather those accidentally caused by you or members of your immediate family.
What’s more, most people think that this insurance only covers injuries or damage caused on their property. Well, that’s not true! Liability insurance not only covers you for the insured premises, but also follows you everywhere in the world, in all your activities!
Liability insurance also protects you from potential lawsuits resulting from your negligence and covers legal fees as well as costs associated with settling the other person’s claim.
In short, someone can sue you for damages they have suffered and for which they hold you responsible, regardless of whether they have valid reasons for doing so. For this reason, it is extremely important to fully understand your liability insurance policy, as you could be sued for unfounded reasons.
Furthermore, as with any home insurance policy, certain limitations and exclusions apply. However, we will not discuss them here as the wording varies from one insurer to another. One exclusion is universal, however: damage and loss caused by a malicious, illegal, or intentional act on the part of the insured is not covered.
What to do in case of damage?
We recommend that you notify your home insurer or insurance broker as soon as you become aware of a problematic situation in order to avoid future issues. The sooner your insurer is aware of the situation, the sooner they will be able to defend you and repair the damage.
In conclusion, even if we don’t want it to happen, if you happen to cause harm to someone—don’t panic!—you’ll know that thanks to civil liability insurance, you’re covered. In the meantime, we recommend contacting your home insurer or insurance broker for more information about civil liability insurance, as it varies from one insurer to another. And be careful, accidents happen so quickly!