HOME INSURANCE IN GERMANY: A COMPLETE GUIDE FOR HOMEOWNERS AND TENANTS
Germany is known for its high standard of living, strict regulations, and well-developed insurance industry. For anyone living in Germany—whether you're a homeowner, tenant, or property investor—home insurance (Hausversicherung) is an essential financial tool that provides protection against unexpected damages, disasters, and liabilities. Although not all types of home insurance are legally required, having the right coverage can save you from devastating financial losses.
In this detailed guide, we will explore the types of home insurance available in Germany, legal aspects, what is typically covered, how to choose the best policy, and practical tips for expats and locals alike.
Understanding Home Insurance in Germany
Home insurance in Germany refers to various forms of insurance that protect a property or its contents. It can generally be broken down into two main categories:
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Homeowners Insurance (Wohngebäudeversicherung) – Covers the physical structure of a house or building.
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Household Contents Insurance (Hausratversicherung) – Covers the movable items inside the property, such as furniture, electronics, and personal belongings.
Both types serve different purposes and are often purchased together to provide comprehensive protection for both the building and its contents.
1. Homeowners Insurance (Wohngebäudeversicherung)
What It Covers:
Homeowners insurance is designed for those who own property (house or apartment) and want protection for the building itself. It typically covers:
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Fire damage
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Storms and hail
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Water damage from burst pipes
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Lightning strikes
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Frost or snow damage
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Damage from natural disasters (optional extension)
This policy covers the cost of rebuilding or repairing the property structure, including:
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Walls and roofs
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Built-in fixtures (kitchen cabinets, flooring, windows)
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Garages and sheds
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Heating and electrical systems
Optional Add-Ons:
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Natural hazard coverage (Elementarschäden): Covers damage from floods, earthquakes, landslides, and heavy rain. This is particularly important in flood-prone regions.
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Glass insurance (Glasversicherung): For windows, doors, and glass walls.
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Rental income loss insurance: For landlords if the property becomes uninhabitable.
2. Household Contents Insurance (Hausratversicherung)
While homeowners insurance protects the building, contents insurance protects your personal belongings inside the home. This is relevant to both owners and renters.
What It Covers:
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Furniture and home decor
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Electronics and appliances
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Clothing and accessories
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Bicycles (sometimes even outside the home)
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Kitchenware and utensils
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Jewelry and valuables (up to certain limits)
Covered perils usually include:
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Fire and smoke damage
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Theft and burglary
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Vandalism
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Water damage from leaks
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Storm and hail damage
If a fire destroys your apartment or thieves steal your TV, Hausratversicherung will reimburse you for the value of those lost items.
3. Personal Liability Insurance (Privathaftpflichtversicherung)
While not a direct part of home insurance, personal liability insurance is often bundled or highly recommended. It protects you if you accidentally cause damage to someone else’s property or health—for example:
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A pipe bursts in your apartment and floods your downstairs neighbor's home.
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You accidentally break a visitor’s expensive laptop.
This is an inexpensive yet extremely valuable policy that almost every resident in Germany carries.
Is Home Insurance Mandatory in Germany?
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Homeowners Insurance is not legally required but is often mandated by banks when taking out a mortgage.
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Household Contents Insurance is not required by law, but strongly recommended for tenants and homeowners.
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Liability Insurance is also not legally required, but is highly advisable and often considered essential in German society.
How Much Does Home Insurance Cost in Germany?
The cost of home insurance in Germany varies depending on several factors:
Factors That Affect Premiums:
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Location: Cities with high crime rates or flood risks can raise costs.
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Property Size and Type: Larger homes cost more to insure.
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Construction Material: Stone or brick homes may cost less to insure than timber ones.
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Coverage Amounts: Higher insured values and additional coverage increase the premium.
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Security Measures: Burglar alarms, smoke detectors, and reinforced doors can reduce premiums.
Average Annual Costs (2025 Estimates):
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Homeowners Insurance: €200 – €500 per year for an average house.
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Contents Insurance: €50 – €250 per year, depending on property size and coverage.
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Personal Liability Insurance: €40 – €80 per year.
Major Home Insurance Providers in Germany
Germany has many reputable insurance companies offering home insurance. Some of the most popular include:
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Allianz
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AXA
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HUK-Coburg
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R+V Versicherung
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DEVK
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Gothaer
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LVM
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HanseMerkur
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CosmosDirekt
Many of these providers offer online calculators to get a quote and compare packages.
Filing a Claim: How the Process Works
If you experience damage or theft, follow these steps to file a claim:
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Notify your insurance provider immediately.
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Document the damage with photos and detailed descriptions.
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File a police report if the loss involves theft, vandalism, or criminal activity.
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Provide receipts or proof of ownership for stolen or damaged items.
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Receive a claim inspection (if necessary).
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Get reimbursed after approval and deduction of any excess (Selbstbeteiligung).
Claims are usually processed quickly if all documentation is in order. Some insurers offer mobile apps to track and manage claims.
Home Insurance for Expats and Foreigners in Germany
Expats living in Germany can easily access home insurance, even if they’re new to the country. However, there are a few things to keep in mind:
Tips for Expats:
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Choose an English-speaking insurer or broker.
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Understand policy details—use translation services if needed.
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Declare all valuable items to avoid coverage disputes.
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Keep digital copies of important receipts and documents.
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Get liability insurance as soon as you move in.
Many expats find bundled insurance packages (e.g., contents + liability) convenient and cost-effective.
Additional Tips for Choosing the Right Policy
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Assess your needs: If you rent, contents insurance is more relevant than homeowners insurance.
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Avoid underinsurance: Insure your items for their full replacement value, not just market value.
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Compare quotes annually: Don’t automatically renew without comparing new offers.
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Ask about discounts: Bundling policies or installing security systems can lower premiums.
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Read the fine print: Be aware of exclusions, claim limits, and waiting periods.
Natural Disasters and Special Coverage
While standard insurance covers fire and storm damage, natural hazard insurance (Elementarschadenversicherung) is not always included. It covers:
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Flooding
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Earthquakes
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Landslides
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Heavy rain and snow
Some areas of Germany—especially those near rivers—face higher flood risks, making this extra coverage very important.
Conclusion
Home insurance in Germany offers comprehensive protection for both property owners and tenants. With a variety of options, including homeowners insurance, contents insurance, and personal liability coverage, it is possible to create a well-rounded safety net against theft, accidents, and natural disasters.