Family insurance or "third party liability insurance" is surrounded by confusion. Many people think that this kind of insurance covers their home or personal accidents. Nothing could be further from the truth. Third party liability insurance covers the damage you cause to others. If the policy includes personal legal protection, it will also defend your interests if others cause you harm or if you need to protect yourself from allegations made by others.
If you, or a member of your family, accidentally causes damage to another person , your personal liability insurance will protect you and members of your family from the financial consequences.
For example, your five-year-old son is riding his bike, but he is not yet very skilled and loses his balance. He falls over with his bike intothe side of a parked car and damaging the entire left side of the car. 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 the victims’ personal injuries.
If someone else causes you damage, the personal legal protection included in your third party liability insurance will ensure that youare compensated, if necessarytrough the courts. In that case third party liability insurance will ensure that the damage you have incurred 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 suffered damage in your house, you will not be compensated , by your neighbour’s fire insurance but, by his third party liability insurance.
In short : third party liability insurance only covers damage you cause to others, or demands compensation for damage caused to you. It will never pay for your own damage.
Legal protection is an insurance policy that helps you defend your rights. It protects you and your family from the consequences of unexpected legal problems in your life. It provides you with professional advice, helps you assert your rights and defend you in court; it covers the costs of defending your interests, such as legal costs, lawyers' fees, bailiffs' fees, experts' fees, etc.).
Whether it's damage suffered through the fault of a third party or a dispute relating to a contract, your income, an inheritance...