Own Fault Damage: When Are You Still Covered by Your Insurance?

Short answer: it depends on the policy

Whether you are insured for damage caused by yourself depends on the type of insurance and the circumstances. With all-risk car insurance, for example, damage to your own vehicle is usually covered, even if it was your fault. Personal liability insurance (AVP), on the other hand, covers damage you cause to others through an accident. But intent and gross negligence are almost always excluded. Exact boundaries differ per insurer, so it is wise to check your policy conditions.

When does own fault occur in practice?

Own fault can pop up in everyday situations. Think of knocking over a vase at a friend's house, a rear-end collision where you bump into the car ahead, or a burst washing machine hose causing water damage to your neighbour. In all these cases, the first reaction often is: am I insured, or do I pay the bill? The difference between an accident and blameworthy behaviour is crucial. Insurers look not only at the damage but also at your role in its cause.

• You accidentally drop a phone and the screen breaks.
• You drive into a bollard while parking.
• Your child riding a bike collides with a parked car.
• While doing DIY in the attic, you fall through the ceiling.
• You trip on the street and pull a passer-by down with you, causing them injury.

Which own-fault damage is usually covered

Here is how all-risk car, AVP and contents compare. To review your own cover, visit our pages on commission-free car insurance comparison, commission-free liability insurance comparison and commission-free contents insurance comparison.

*Note: the exact coverage and exclusions can vary per insurer and policy. Always consult your own policy wording and schedule.

If you are bringing a car to the Netherlands, make sure you arrange the insurance correctly. Read bringing your car to the Netherlands to avoid costly mistakes.

What is usually not covered (and why)

Not every self-caused damage is paid out. Insurers draw a clear line at intent and gross negligence. Also, if the damage could have been prevented with normal maintenance, the claim may be rejected. Moreover, a persistent misunderstanding is that every 'mistake' falls under liability insurance, while it only covers damage to third parties — not your own belongings.

• Intent: purposely breaking something is never insured. Even a 'funny' act where you knew it could go wrong is excluded.
• Gross negligence: leaving a pan on the stove and causing a fire, or riding a bike with faulty brakes can be seen as recklessness.
• Deferred maintenance: if you ignore a leaking pipe for months and the damage worsens, the insurer may argue you were negligent.
• Damage to your own property under AVP: your liability insurance never covers damage you cause to your own possessions.
• Pet damage to own contents: often excluded under standard contents insurance; a separate pet damage cover is needed.

How to check your policy for own-fault cover

Most people do not know exactly where to look in their policy wording. Yet it takes only a few minutes to clarify when own fault is and is not covered. We recommend starting with the sections called 'exclusions', 'prevention duty' and 'deductible' in your policy schedule. Also look for special clauses such as 'intent and good faith' or 'inherent defect'.

Use the annual non-life insurance review checklist to go through all your policies and see if they still fit. That is also the moment to check these coverage questions.

If you are thinking about adjusting your deductible, read our low premium high deductible cost analysis to understand the trade-off. Increasing your deductible can lower your premium, but raises your own financial exposure.

Common mistakes that cost you premium and cover

Many people unintentionally make errors that lead to a claim denial, or that cost them unnecessary premium. Here are the most common pitfalls.

• Admitting fault too quickly: in the heat of the moment you say 'it was my fault', while the insurer is still investigating. Stick to the facts.
• Claiming small damage: for €300 damage to your own car you might pay €150 deductible, but you also lose no-claim years, which can cost more over time. Use the claim or self-pay checklist.
• Thinking AVP covers everything: your AVP is for damage to others, not for your own stuff. You need contents or car insurance for your own property.
• Waiting too long to report: many policies require you to report damage within a reasonable time. Waiting too long may lead to rejection.
• Not reporting changed circumstances: if your situation changes (e.g. you drive fewer kilometres or you moved), it can affect cover for own-fault damage. Keep your details up to date.

When it makes sense to have an adviser check

It can be tricky to determine on your own whether your policy offers the right protection for own-fault damage. Especially if you have multiple policies with different companies, the picture can become confusing. In such cases, it can be useful to involve an independent commission-free insurance adviser. Such an adviser looks at all policies together and spots overlapping cover, gaps and unnecessary premiums.