HOME INSURANCE IN GERMANY: A COMPREHENSIVE GUIDE FOR PROPERTY OWNERS AND TENANTS
Germany is known for its structured legal systems, efficient bureaucracy, and high living standards. One of the key aspects of maintaining security in German households is home insurance, which protects homeowners and renters from a wide range of risks. Whether you own a property or rent an apartment, understanding how home insurance works in Germany is essential for financial safety, peace of mind, and legal compliance in some cases.
This article provides a comprehensive overview of home insurance in Germany, including types of coverage, legal obligations, costs, providers, and practical tips for securing your home.
What Is Home Insurance in Germany?
Home insurance in Germany is generally divided into two major categories:
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Residential Building Insurance (Wohngebäudeversicherung) – for homeowners
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Household Contents Insurance (Hausratversicherung) – for both homeowners and tenants
Each policy serves a specific purpose, and many residents choose to have both for complete protection.
1. Residential Building Insurance (Wohngebäudeversicherung)
Who Needs It?
Residential building insurance is intended for property owners, particularly those who own standalone houses or apartment buildings. It is not legally required, but it is usually mandatory if the property is financed through a mortgage, as banks demand proof of insurance to protect their investment.
What Does It Cover?
This type of insurance covers physical damage to the building structure caused by:
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Fire and explosions
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Storms and hail
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Lightning strikes
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Burst water pipes (Leitungswasserschäden)
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Natural disasters (if extended coverage is purchased)
Covered components typically include the walls, roof, floors, doors, windows, and permanently installed elements such as heating systems and built-in kitchens.
Optional Add-Ons
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Natural hazard insurance (Elementarschadenversicherung): Covers earthquakes, floods, landslides, and heavy rain. Particularly important in flood-prone regions.
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Glass breakage insurance: For windows, shower screens, and built-in glass.
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Rental loss protection: If you're a landlord and your property becomes uninhabitable.
2. Household Contents Insurance (Hausratversicherung)
Who Needs It?
This insurance is for anyone who lives in a home or apartment, whether owner or renter. It is voluntary, but highly recommended for protection against damage or loss of personal belongings.
What Does It Cover?
Household contents insurance protects your movable possessions, such as:
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Furniture
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Clothing
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Electronics
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Appliances
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Jewelry
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Decorations
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Kitchenware
The coverage usually applies to damages caused by:
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Fire
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Theft (including burglary)
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Water leakage (e.g., burst pipes)
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Storm and hail
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Vandalism following a break-in
Many policies also cover damage during travel (e.g., hotel stays) and storage in outbuildings like garages and cellars.
Optional Add-Ons
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Bicycle theft insurance
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High-value item coverage (e.g., art, watches)
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Extended theft protection for items stolen outside your home
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Glass insurance for non-fixed glass items
Cost of Home Insurance in Germany
The cost of home insurance depends on several factors, including:
For Building Insurance:
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Property value and size
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Year of construction
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Location (risk of floods, storms, etc.)
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Type of construction materials used
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Coverage level and add-ons
Average cost: €250 to €800 per year, depending on the property and region.
For Contents Insurance:
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Total insured value (sum insured)
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Security measures in place (alarms, locks)
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Neighborhood crime rate
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Optional add-ons (e.g., bike theft)
Average cost: €50 to €150 per year for an apartment.
You can typically select the insured value yourself based on the estimated replacement value of all household items.
Insurance Providers in Germany
Germany has a wide range of insurance companies offering home insurance. Some of the most popular and reliable ones 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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Gothaer
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DEVK
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LVM
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Check24 (comparison platform)
It's recommended to compare offers using platforms like Check24 or Verivox, which allow you to filter based on coverage type, price, and special features.
How to Choose the Right Home Insurance
1. Assess Your Needs
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Are you a homeowner or renter?
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Do you live in a high-risk area for floods or burglary?
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Do you own valuable items that need special coverage?
2. Compare Policies
Don’t go for the cheapest policy without checking:
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What’s included in standard coverage
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Deductibles (Selbstbeteiligung)
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Exclusions and limitations
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Customer service ratings
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Claim process simplicity
3. Pay Attention to the Insured Sum
If the insured value is too low, you may be underinsured (Unterversicherung), and the insurance company may reduce payouts accordingly. Many insurers offer underinsurance waivers if you follow their valuation guidelines.
4. Consider Combined Packages
Some providers offer discounts if you combine home insurance with other policies, such as personal liability (Haftpflichtversicherung) or legal protection (Rechtsschutzversicherung).
Making a Claim
If you need to file a claim, follow these steps:
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Report the incident immediately to the police (in case of theft) and your insurer.
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Document everything: take photos, videos, and collect receipts or valuations of damaged items.
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Fill out a damage report form provided by the insurer.
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Wait for inspection if required (for major damage, an adjuster may be sent).
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Receive reimbursement or repair service according to your policy terms.
Tips for Saving on Home Insurance
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Install security systems (alarms, surveillance, locks)
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Pay annually instead of monthly (discounts may apply)
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Increase your deductible if you can afford higher out-of-pocket costs
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Bundle policies for multi-product discounts
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Keep an updated inventory of your belongings
Legal Considerations
While home insurance itself isn’t legally required (except when financing property), landlords can require tenants to purchase contents insurance. Additionally, if you own a condominium (Eigentumswohnung), you may share a building insurance policy with other unit owners through a homeowners' association.
In cases of gross negligence (grobe Fahrlässigkeit), such as leaving candles unattended, insurers may reduce or refuse payouts unless you have specific protection for negligent behavior.
Home Insurance for Expats and Foreigners
Expats and foreigners living in Germany can purchase home insurance just like locals. Many insurers offer English-language support and contracts. Make sure to:
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Use international-friendly platforms like Feather or Getsafe
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Provide accurate details about your belongings
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Understand what is covered and what’s not (read the fine print)
Renters in particular should strongly consider Hausratversicherung, as landlords are not responsible for any damage to a tenant’s personal belongings.
Conclusion
Home insurance in Germany offers robust protection against a wide range of risks that can affect your property and belongings. Whether you’re renting a small apartment or owning a large house, having the right insurance coverage ensures financial security and peace of mind. With a well-regulated insurance market and a variety of options, finding suitable home insurance in Germany is straightforward—especially when you understand your needs and compare offerings carefully.