Contents and Liability: Top 3 Misconceptions

Contents and personal liability are two of the most popular types of insurance in Germany. But despite the fact that tens of millions of people have this cover, there are some misconceptions about which policy covers which risk. This article clears up the confusion and lists the most important differences between contents and liability insurance. And we promise not to use any insurance jargon.

#1 What do liability and contents insurance cover?

When insuring possessions, ownership is decisive. This is the first big difference between contents and liability insurance. Contents insurance typically only covers things that you own. So imagine all the stuff you would take with you if you were moving house: things like furniture, clothes, electronic devices and appliances. These can all be covered by your contents insurance.

Liability insurance, on the other hand, covers damage you cause to someone else’s property. For example, if you live in a rental flat and damage your landlord’s expensive real wood flooring, that’s when your liability insurance comes into play. Liability insurance can even cover you if you accidentally injure someone. Depending on the case, your policy could cover that person’s medical costs as well as lost income they may have suffered as a result.

#2 Does insurance cover accidental damage?

We can all be clumsy from time to time. But there’s not many things more awkward than that moment when you realise you have broken something that belongs to someone else. Thankfully, personal liability can spare you the ‘red face moment’ as it covers accidental damage to other people’s belongings. So if you spill wine on your friend’s carpet or drop their phone on the floor, your liability insurance is there to save your bank balance (and quite possibly your friendship).

But what if you drop your own phone or spill wine on your own carpet? Does your contents insurance cover this? Unfortunately, no. Contents insurance is for external risks, such as fire, burglary, and damage caused by storms or burst pipes. Accidental damage to gadgets such as phones and computers may be covered by separate gadget insurance (such as AppleCare). And if your electronic devices just stop working one day, you may be able to make a claim on the manufacturer’s warranty.

#3 Which insurance covers key loss?

Keys sometimes have a tendency to disappear, and so claims for lock replacement are very common. This typical scenario causes some confusion. Understandably, many people think key loss is covered by contents insurance – after all, keys are part of your home contents, right? Actually, contents insurance will only cover lock replacement if your home was broken into or your keys were stolen during a burglary.

In fact, key loss is usually a case for liability insurance, as the locks in your apartment building or workplace belong to someone other than you. Make sure to check your policy, though, as many insurers don’t cover this risk. Fortunately, Getsafe Liability Insurance does cover lock replacement – both for your home and for your workplace.

Comparison: Liability vs. Contents

Whose possessions does it cover?

Liability: Someone else’s

Contents: Your own

What risks does it cover?

Liability: Damage, injury or financial loss you cause to someone else

Contents: Damage and losses caused by fire, burglary and damage caused by storms or burst pipes.

Is lock replacement covered?

Liability: Yes, in cases of key loss

Contents: Yes, in cases of burglary or another insured event

As you can see from the list above, contents and liability make a good combination. If you have one, it's inexpensive to also get the other. For more on what’s covered, visit our product pages.