Man is constantly subject to various risks. Danger is a part of everyday life.

Insurance companies were invented in order to compensate victims after they suffer damages. These victims earn compensations in exchange for a contribution that they make to an insurance company. This compensation depends on the amount of risk which is underwritten in the contract.

In the beginning, insurance was only meant for private salaried workers. Later, it spread to other fields such as home insurance.

What does home insurance cover?

The main risks that are covered by home insurance policies are fire, explosions and water damage. If you have insurance, in the event that one of the aforementioned situations presents itself, you will be entitled to an indemnity from your insurance company. There are several different packages covering different situations but the multi-risk package is the one that offers the broadest coverage.

With this type of contract, you can get compensation if your goods are damaged. This clause includes all the things that are related to the building and the furniture that are on your property. From this perspective, the company will compensate you in the case of a break-in, jewelry theft and electrical damage caused by electrical appliances. This compensation will depend on the different clauses that are included in the contract you have with your insurance company.

Basic home insurance packages don’t require extensive negotiations or talks with the insurance company. However, if you decide to pick a multi-risk home insurance package, you will have to specify within the contract any and all risks for which you are to be compensated.

Applying civil liabilities to accidents that occur at home

In this section, we are referring to the civil liability of the person that causes the damage. This person must compensate the victim, as the victim enjoys legal protection. In this type of case, the insurance will substitute itself to the insured person, to pay the compensation. Companies protect the owner of the property, their spouse, their children and the maintenance staff. In other words, it covers those that live permanently on the premises.

However, insurance companies limit risks for which they offer third-party compensations to risks that are directly related to the residence. They do not cover intentional damage, damage caused by a dog or by motorized vehicles. The damage will not be covered if it is done to neighbours and their goods.

The individual has the right to effective legal protection for themselves and their goods. The owner’s civil liabilities are engaged as soon as any form of damage is caused to the neighbours and their goods. This legal protection is the reason why insurance companies limit their interventions against risks caused to neighbours.

The scope of intervention of the insurance companies is limited by the contract you have established with them. Anything that is not included in the contract will have to be covered by the person that is responsible for the damage.