Home insurance and third-party liability – why is it important?

Home insurance is usually associated with protecting "your things" – repairs after water leaks, damaged interior decoration or household appliances. Third-party liability insurance is just as important, as it protects you in situations where you accidentally cause damage to other people or their property.

BTA property and home insurance is designed not only for the home itself and its contents but also offers the option of purchasing it together with third-party liability insurance, choosing indemnity limits that are appropriate for everyday life.

What is third-party liability in home insurance?

Simply put, if you (or someone living in your household) accidentally cause damage to a third party, you will have to indemnify them for the losses caused. BTA will indemnify for these losses on your behalf if you have purchased third-party liability insurance.

5 real-life situations where third-party liability insurance can "save your budget"

1) You flood your neighbours

A pipe, washing machine, dishwasher, or clogged drain – water floods your neighbours. The result: repairs to ceilings, walls, floors, and sometimes electrical wiring.

2) Fire or smoke damage also affects other apartments

Even a small fire can cause smoke damage and odours that affect common areas or neighbours’ property. Neighbours’ apartments may be flooded during firefighting.

3) You accidentally damage utilities during repairs

Drilling, installation, reconstruction – one inaccurate step can cause leaks or damage that also affects others.

4) Your actions damage common property

For example, damage to a stairwell or other common area.

How does home insurance work together with third-party liability?

Think of it as two layers of protection:

• Home + belongings: helps restore your home and property after an accident.
• Third-party liability: helps in situations where damage has been caused to others.

This combination is especially important in multi-unit buildings, where one accident can affect several properties at once.

What to do if an accident occurs? (brief action plan)

1. Stop the damage (turn off the water, disconnect the electricity if it is safe to do so).
2. Document the situation (photo/video, date, time, brief description).
3. If others are involved (neighbours, property manager), inform them and agree on further action.
4. File an insurance claim from BTA.

Home insurance protects your property, while third-party liability insurance protects your finances if damage is caused to others. BTA also emphasizes the possibility of purchasing property insurance together with third-party liability insurance and choosing appropriate indemnity limits to protect yourself from expenses in cases such as flooding your neighbours or a fire that also affects others.