Personal Liability Insurance

Soubrette · 4 August 2008 at 7:48PM

Hi all

I wonder if anyone has any ideas for companies that provide the above insurance.

I used to work in the insurance industry and don't do what I would call unnecessary insurance, instead I have a pot of money which is supposed to cover eventualities such as vet bills, loss of contents etc.

However there are a few insurances that I do use (because my pot is limited) and those include statutory insurance, travel insurance and I think it should include personal liability. A friend was recently injured by a dog who had no insurance and it got me thinking about if mine escaped and caused say a car accident - I could be liable for possible thousands of pounds or worse.

Sou

woodys_wonders · 4 August 2008 at 8:04PM

With regards to liability for pets, if you take out Pet Insurance this gives you the liability for animals.
For yourself your home insurance gives you liability cover.

Soubrette · 4 August 2008 at 8:21PM

woodys_wonders wrote: »

With regards to liability for pets, if you take out Pet Insurance this gives you the liability for animals.
For yourself your home insurance gives you liability cover.

Thanks woodys wonder. My dog is an old boy though and having looked into the insurance and weighed up the pros and cons it is unlikely that pet insurance is cost effective for me - for example I have to pay a high excess and 35% minimum of any claims I do make for the companies I've looked at.

Similar to contents, I just don't have enough high value things to warrant taking out contents on its own.

I was just wondering if there an insurance where I could actually pay for the bit I do want

Sou

woodys_wonders · 4 August 2008 at 8:42PM

Your best bet would be to contact a local broker, they would be able to give you the best advice.

mattymoo · 4 August 2008 at 9:31PM

Best bet might be to take a basic no frills home contents insurance policy, select a low sum insured and a high excess.
This would certainly give you cover for occupiers liability / liability for dogs etc.

Soubrette · 4 August 2008 at 10:05PM

mattymoo wrote: »

Best bet might be to take a basic no frills home contents insurance policy, select a low sum insured and a high excess.
This would certainly give you cover for occupiers liability / liability for dogs etc.

I was wondering the same but if there were any buildings insurance that offered liability (buildings being another insurance I consider necessary).

Sou

mattymoo · 4 August 2008 at 10:43PM

Soubrette wrote: »

I was wondering the same but if there were any buildings insurance that offered liability (buildings being another insurance I consider necessary).

Sou

Buildings insurance (liability section) covers you for Property Owners Liability - for instance a slate falls from your property and injures someone.

Contents insurance (liability section) covers you for negligent acts or omissions you commit as the occupier of the property. This bit would include escape of dogs etc.

Buildings insurance will usually be a mortgage requirement anyway and as you say, it is difficult to self insure against a total burnout. If you already have this cover, have a word with your insurer to see what they can do for you.

I am not aware of any general insurer splitting out the liability covers. Some specialist legal insurers may offer legal cover for pursuing and defending legal cases. The prices for these standalone policies tend to be quite high since most people who buy them have litigation in mind or have a litigous nature.

Soubrette · 5 August 2008 at 6:20PM

mattymoo wrote: »

Buildings insurance (liability section) covers you for Property Owners Liability - for instance a slate falls from your property and injures someone.

Contents insurance (liability section) covers you for negligent acts or omissions you commit as the occupier of the property. This bit would include escape of dogs etc.

Buildings insurance will usually be a mortgage requirement anyway and as you say, it is difficult to self insure against a total burnout. If you already have this cover, have a word with your insurer to see what they can do for you.

I am not aware of any general insurer splitting out the liability covers. Some specialist legal insurers may offer legal cover for pursuing and defending legal cases. The prices for these standalone policies tend to be quite high since most people who buy them have litigation in mind or have a litigous nature.

Thanks for the info mattymoo, very helpful.

I would actually even consider taking a chance on no buildings as we live in a non flood area and all occupants are non smokers which reduces an already low chance of claim to even lower. If the worst did happen then I could always get a second hand caravan to live in in the short term.

However, I have two kids so need a bit more than this to live in plus being attached to a rented house, I don't feel comfortable that if next door (smokers) caused a serious fire that they would be properly insured to cover my house damage too.

I think, though, I'll probably be looking at some basic contents insurance but at least you've given me some ideas on where to look.

Sou

mattymoo · 5 August 2008 at 8:59PM

Smoking is a factor in quite a small number of fires (less than 5%).
Major causes are arson, electrics, heating, hot works and cooking. That includes industry as well. Within residential properties, electrical and cooking are the two main causes.

Not all floods are down to rivers and sea levels rising. Flooding from blocked drains is all too common these days.

Not to mention lightning and impact claims.

Insurance is simply a means of risk transfer and in the case of buildings, most people want to be able to transfer that risk. There are very few buildings out there with no cover whatsoever. It does pay to select an increased excess. When I bought my Hiscox policy the premiums were as follows:-
£600 with a £100 excess.
£400 with a £250 excess.
£300 with a £500 excess.
That is for a 5 star highly regarded policy with quite a few frills. I selected a £250 excess but it goes to show premium can be saved if you are not adverse to carrying your own risk (the excess).

Soubrette · 5 August 2008 at 10:29PM

Some very good points mattymoo, although there seems to be some contention amongst the figures you've given. For example the halifax seems to agree with you but Avon Fire and Rescue cite smoking as the second biggest cause of house fires. Another website cites cooking as the number one yet another that it's chip pans (seems strange to me as I don't think I know anyone who has an old fashioned chip pan anymore

)

I recognise that I am not usual in my approach to insurance - also that I view my risk as an overall risk plus affordability rather than by event. So I try and assess what the chances are of me having to claim on all insurance as a whole rather than each individual one (in fact this is vital in my self insurance where possible philosophy). So I know I am likely to claim on pet insurance but how much would I have to claim per year to make that insurance viable for me (worked out using excesses and premiums etc) and how likely am I to claim on contents insurance and pet insurance or contents insurance with accidental damage. An imprecise science to say the least but I always have the back up of, in the unlikely event of my 'pot' being depleted by say having to pay for more than 3 insurable events then I can always take out insurance then.

I admit to being reluctant to spread my risk by using companies who not only has to cover their overheads but have to build in a certain amount of profit. I would rather take on the risk myself, have a pot of 'insurance money' and some interesting contingincy plans and take out the minimal amount of insurance for when I cannot cover liabilities but I always have those companies as a fall back if necessary.

It's a gamble but I feel less so than taking out lots of different insurance and in the end only having one or two as worthwhile.

If I had less savings, I would have more insurance, if I were very rich I would probably have none

Sou

mattymoo · 5 August 2008 at 10:45PM

You're likely to be correct with your figures - I work in commercial insurance hence the high arson figure. Smoking in the workplace is banned by legislation these days as well.

I know what you mean about self insurance. Until recently we were paying out for 3 cat policies at £84pa each. We kept one policy (for the most idiotic, accident prone cat) and cancelled the other two and put an extra £170 away pa into the contingency pot.

Personal Liability Insurance

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