Does your liability insurance cover its own damage? The clear answer for 2025
19 Apr 2025
5
Minutes
Katrin Straub
CEO at nextsure
An accident, and your expensive smartphone is damaged – does the liability insurance cover it? Many policyholders only ask this question when a claim arises. This article clarifies when your insurance will pay and when it won’t.
The topic in brief and concise terms
Private liability insurance generally does not cover damage to your own property or to yourself (own damage).
Their main function is to protect against third-party compensation claims that you have caused.
Other types of insurance, such as contents, comprehensive, or specific item insurance, are responsible for covering damage to personal property.
Quick Facts: Eigenschaden und Haftpflicht – The Most Important Points at a Glance
Your personal liability insurance primarily covers damage to third parties. Damage to your own belongings is excluded in nine out of ten cases.
The basic principle is: protection against third-party claims. This reduces the premiums by about 40 to 60 percent.
Did you drop your €1,500 smartphone? This is considered personal damage. Your liability insurance does not cover this.
There are very few exceptions. These are usually found in special contract clauses or other types of insurance.
The principle of liability: Why personal damages are not covered
Liability insurance is based on the principle of causation for damages to third parties. This secures over 80 million people in Germany.
The Civil Code governs this obligation to pay compensation, particularly § 823 BGB. This legal basis defines 100% of the claims.
The insurance covers legitimate claims. Sums insured often reach up to 50 million euros.
The focus is clearly on protection against liability risks to third parties. Lacking liability insurance can cost 100,000 euros.
Own damages concern your own assets or person. Over 90% of all own damages are excluded.
Coverage for own damages would equate to all-risk coverage. This would increase premiums for everyone by 40 to 60%.
The functioning of liability insurance strictly targets third-party damages. This affects millions of policyholders.
Example: You accidentally damage a friend's property worth 500 euros. Here, your liability insurance pays out.
Damage your own property? Your personal liability insurance does not cover this in 100% of typical cases.
Practical examples: When liability definitely does not cover self-damage
In everyday life, situations can quickly arise. Over 70% of enquiries concern personal damages.
Here are three clear examples of when your personal liability insurance does not cover personal damages. This accounts for 90% of enquiries.
Your own smartphone falls: Your €800 smartphone slips from your hand. The display is cracked. This is a purely personal damage.
Damage caused by family members in the same household: Your child knocks over a €150 vase. Since the child is covered, this is a personal damage. More: Liability Damage Family.
Unintentional self-damage: While renovating, you knock over a €200 ladder. This is also damage to your own property.
These three examples illustrate the core principle: Liability insurance is there for damage to third parties.
For damage to your own property, other insurances are responsible. House contents or item insurances cover this 100%.
The necessity of liability insurance remains unaffected. It protects against claims worth millions of euros.
Exceptions and special cases: Are there circumstances for a service?
The rule "no coverage for own damage" is very strict. There are only a few defined scenarios, perhaps 2-3 relevant cases.
Coverage for own damage is extremely rare in personal liability insurance. Less than 1% of policies offer this.
It is more likely found in specific motor liability policies. An example: You damage your second car with the first car.
A specific motor own damage coverage could apply. This often costs an additional 50 euros annually.
Another area is courtesy damages. You help a friend move and drop their 1000 euro vase.
This is not a true own damage but rather third-party damage. Good policies cover this up to 5,000 euros.
Check your policy carefully for such clauses. Often, they are only included in premium policies.
Personal liability insurance offers a wide range of options. Over 300 policies are available to choose from.
Expert depth: Legal foundations and insurance conditions
The exclusion of personal damages is deeply rooted in the insurance industry. This has been standard practice for over 50 years.
The General Liability Conditions (AHB) clearly define the scope of coverage. Personal damages are explicitly excluded.
A look at § 1 AHB shows: Protection exists only when third parties make claims.
This aids risk calculation. It keeps premiums affordable for millions of policyholders.
Our expert tip: Do not confuse private liability insurance with full coverage insurance.
The definition of liability insurance is clear. It protects against 100% of third-party damages.
For damage to your own car, there is the comprehensive insurance. It covers over 90% of vehicle damages.
For household contents, there is the household insurance. This covers 100% of insured personal damages.
Mixing them would undermine the liability system. It would lead to a premium increase of at least 30 percent.
Recommendations: How to Ensure Optimal Coverage
Three concrete steps help to avoid misunderstandings and coverage gaps. This way, you are 100% covered.
Read your policy: Review your insurance terms and conditions carefully. Only 50% of policyholders do this. Pay attention to exclusions.
Identify the need: Personal liability insurance does not cover your own damages. For valuable belongings like a 500 Euro device, other types of insurance are required.
Seek advice: Determine your individual insurance needs professionally. Good advice can save up to 20 percent in costs.
A clear separation of insurance purposes protects you from unpleasant surprises in the event of a claim. This way, you avoid 100% of the uncertainties.
The impact of a claim on your premium is also an important aspect. This can account for up to 30%.
Conclusion: Clear limits of personal liability insurance for own damages
The question "Does my liability insurance cover damage to my own property?" can be clearly answered: Generally, no.
Private liability protects you from the financial consequences of damage to third parties. It does not cover your own property.
This principle ensures the affordability of the insurance. Millions of insured individuals benefit from low premiums.
There are specialized solutions for protecting your own belongings. Household insurance covers 100% of your inventory.
For example, in the case of loss of third-party property: This is third-party damage. Your liability will cover this.
Solid coverage requires knowledge. Understand the limits of your policy 100%.
Request an individual risk analysis now: Have your insurance situation checked for free. Over 90% of our customers receive suggestions for optimization.
More useful links
Wikipedia provides a comprehensive overview of liability insurance in Germany.
The Consumer Centre offers valuable consumer advice on private liability insurance.
The GDV (Association of German Insurers) provides statistics on the number of claims in property and casualty insurance.
Gesetze im Internet offers the full text of the Insurance Contract Act (VVG).
The ADAC provides extensive information on motor liability insurance.
FAQ
Why is personal damage not covered by my private liability insurance?
The private liability insurance is designed to protect you from financial claims by third parties to whom you have caused damage. Damages to one's own property (self-inflicted damages) are not covered under this purpose, as you are not liable to yourself in the legal sense. Covering self-inflicted damages would undermine the principle of liability insurance and significantly increase premiums.
My child has damaged my laptop. Is this covered by liability insurance?
If your child lives with you in the same household and is covered by your family liability insurance, the damage to your laptop is considered self-damage. In this case, private liability insurance generally does not cover it. There are policies that cover damage caused by children below the age of seven to third parties, but not to their parents' property.
I helped a friend with his move and damaged his piece of furniture in the process. Is this a personal damage?
No, this is not a direct damage to your property, but damage that you have caused to a third party (your friend). Many good private liability insurances cover so-called courtesy damages. Check your policy or ask your insurer. The damage did not occur to your property.
Is there insurance that covers own damage?
Yes, there are insurances that cover own damage. These include, for example, the home contents insurance for damage to your household inventory (e.g., due to fire, water damage, storm, burglary), comprehensive insurance for your car, or special item insurances for valuable individual items such as jewelry or electronics.
What is the difference between first-party damage and third-party damage?
An own damage is a damage that you inflict on yourself or your own property. A third-party damage is a damage that you inflict on another person (a third party) or their property. Private liability insurance covers third-party damages.
Can I take out personal damage coverage in addition to my private liability insurance?
An explicit personal damage coverage as an additional component to private liability insurance is uncommon and usually not offered. Separate types of insurance, such as household contents or comprehensive insurance, are used to protect one's own property. A few special tariffs, for example, in car insurance for damage to one's own second car caused by the first car, may contain elements of personal damage coverage.
