Overview
Third-party liability insurance protects you and anyone in your family, including your pets, in case of damage accidentally inflicted by them upon others.
An example of damage that you or someone in your family has caused given by the commisioner.brussels makes the scope of the insurance more clear:
For example, your five-year-old son is riding his bike, but he is not yet very skilful and loses his balance. He falls over with his bike against the side of a parked car and causes damage along the entire left hand side. You are personally liable. If you are held responsible your third party liability insurance will reimburse the victims on your behalf. If necessary the insurance will also cover victims’ physical injuries.
If damaged has been caused to you, third-party liability insurance will make sure that the damage you have suffered is reimbursed.
For example, your neighbour’s gutter is blocked and this leads to water damage in your child’s bedroom following a downpour. You will be compensated. Even though you have incurred damage in your house, you will not be compensated via your neighbour’s fire insurance but via his third party liability insurance.