Home Insurance in Germany: A Complete Guide for Property Owners and Renters

Germany is known for its robust legal systems, efficient administration, and high standards of living. It’s no surprise that this efficiency extends to the country’s insurance market, including the field of home insurance. Whether you're a homeowner, a tenant, or an investor with property in Germany, understanding home insurance is essential for protecting your assets and ensuring financial security.

In this article, we provide a comprehensive overview of home insurance in Germany, including the types of policies available, what they cover, costs, how claims work, and practical advice for choosing the right coverage.

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1. Is Home Insurance Mandatory in Germany?

In Germany, home insurance is not legally mandatory, but it is strongly recommended, especially for homeowners.

For tenants, some landlords may require proof of insurance (typically liability and contents insurance) before signing a rental agreement.

For property owners, mortgage lenders usually require residential building insurance as a condition for financing a home.

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2. Types of Home Insurance in Germany

There are three main types of home-related insurance in Germany, each covering different aspects of property and personal belongings:

A. Wohngebäudeversicherung (Residential Building Insurance)

This insurance is essential for homeowners and covers the physical structure of a house or apartment. It protects against damage caused by:

• Fire and lightning

• Burst pipes and water damage

• Storms and hail

• Natural hazards (sometimes)

Coverage typically includes:

• Walls, roof, floors

• Built-in kitchens and bathrooms

• Heating systems and plumbing

It does not cover personal belongings inside the house—that’s where household contents insurance comes in.

B. Hausratversicherung (Household Contents Insurance)

This is relevant for both renters and homeowners. It covers the value of all movable items inside the house, such as:

• Furniture

• Electronics

• Clothing

• Appliances

• Valuables

Covered events include:

• Fire

• Water damage from pipes

• Theft (including burglary)

• Vandalism

• Storm and hail

C. Elementarversicherung (Natural Hazard Insurance)

This is an optional extension to building or contents insurance. It covers natural disasters such as:

• Flooding

• Earthquakes

• Landslides

• Avalanches

• Heavy snowfall

• Backwater from sewers

Due to increasing extreme weather events in Europe, this coverage is becoming more relevant, especially in flood-prone areas.

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3. What Does Each Policy Cover?

Here’s a simplified breakdown:

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4. Average Cost of Home Insurance in Germany

A. Building Insurance

The cost depends on:

• Size and value of the building

• Construction material

• Age of the building

• Risk location (flood zones, weather-prone areas)

Average annual premium: €200 to €400

B. Contents Insurance

Costs vary by:

• Size of home

• Contents value

• Location (urban vs rural)

• Security systems in place

Average annual premium: €50 to €200

Most insurers use a formula of €650 per square meter to estimate the value of your household contents.

C. Natural Hazard Insurance

This is typically an add-on and may increase your premium by €50 to €150 per year, depending on your area and insurer.

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5. How to Choose a Home Insurance Provider in Germany

Germany has a competitive insurance market with dozens of companies offering home coverage. Some of the most well-known include:

• Allianz

• AXA

• DEVK

• HUK-Coburg

• R+V Versicherung

• Zurich

• LVM

• DA Direkt

• CosmosDirekt

Tips for Choosing the Right Insurer:

1. Compare policies using comparison websites like Check24 or Verivox.

2. Review exclusions carefully (e.g., damage due to negligence may not be covered).

3. Evaluate customer service – fast claims processing is critical.

4. Look for bundled discounts if you already have car or liability insurance with the same provider.

5. Ask about optional extras like glass breakage, bicycle theft, or garden furniture.

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6. Making a Claim: The Process

If your home or contents are damaged, here’s what you need to do:

1. Contact your insurer immediately.

2. Document the damage with photos or video.

3. Keep receipts for any emergency repairs or purchases.

4. Submit a claim online or via forms provided by your insurer.

5. An assessor may visit to inspect the property.

6. Once verified, the insurer will reimburse or replace damaged goods or arrange repairs.

Note: Filing false claims is a criminal offense in Germany.

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7. Deductibles and Limits

Most policies include a deductible (Selbstbeteiligung), which is the amount you pay out of pocket before the insurance covers the rest.

• Common deductibles: €150 to €300

• Choosing a higher deductible can lower your premium.

Coverage limits also apply, particularly for high-value items like jewelry or art. Always declare such items in advance and consider specialized coverage if necessary.

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8. Liability and Home Insurance

While not strictly a “home” policy, private liability insurance (Privathaftpflichtversicherung) is crucial in Germany. It covers you if:

• You cause damage to someone else’s property (e.g., flooding your neighbor’s flat).

• A tree from your garden falls and causes injury.

• Your child breaks a neighbor’s window.

Most Germans consider this insurance essential, and it’s inexpensive (around €30 to €80/year).

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9. Insurance for Tenants

Renters in Germany are not required by law to have home insurance, but it’s highly recommended.

• Contents insurance protects your belongings.

• Liability insurance protects you if you cause accidental damage to the landlord’s property.

Some landlords will request proof of liability insurance before renting out their property.

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10. Climate Change and Insurance Trends in Germany

Due to the rise in extreme weather—like the 2021 floods in western Germany—there’s increasing emphasis on:

• Elementarversicherung (natural hazard coverage)

• Climate-resilient construction

• Higher premiums in risk zones

The German Insurance Association (GDV) is working with policymakers to encourage better flood mapping and climate-related risk assessment.

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11. Can Foreigners Buy Home Insurance?

Yes, absolutely. Whether you are:

• An expat homeowner

• An international investor

• A long-term tenant

You can buy any type of home insurance. Most major insurers offer contracts in English or with English-speaking support.

Some digital-first insurers like Feather and Getsafe cater specifically to non-German speakers, simplifying the process.

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12. Key Terms in German Home Insurance

Here are some helpful translations:

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Conclusion

Whether you're living in Berlin, Munich, or a small Bavarian village, home insurance in Germany is an essential part of protecting your property and peace of mind. While not always legally required, it is a crucial financial safeguard against unforeseen events—fire, water damage, storms, and theft.

By understanding the different types of insurance, comparing providers, and tailoring your policy to fit your needs, you can ensure that your home, belongings, and financial future are secure. In a country where planning and structure are valued, home insurance is not just a product—it’s part of the smart, prepared lifestyle that defines modern German living.