Complete Guide to Home Insurance in Germany (2025)
Germany is one of Europe’s most stable and well-regulated housing markets. Whether you're a homeowner or a tenant, protecting your home and belongings is a vital part of responsible living. This is where home insurance in Germany comes into play. The country offers a well-structured system of home insurance products that are designed to protect not just the physical structure of a house but also the contents inside and liability related to property ownership.
In this comprehensive guide, we’ll explore the types of home insurance available in Germany, their coverage, legal requirements, the claim process, cost factors, and tips to ensure you’re fully protected.
1. Is Home Insurance Mandatory in Germany?
Unlike health or car insurance, home insurance is not legally mandatory in Germany. However, certain types of home insurance are strongly recommended, and in some cases, required by mortgage lenders as a condition of financing a property purchase.
For renters, some landlords may require tenants to have personal liability insurance (Haftpflichtversicherung), although this is separate from standard home insurance.
2. Types of Home Insurance in Germany
Germany separates home insurance into different categories based on what you are insuring: the physical structure, the contents inside the home, or third-party liability.
A. Residential Building Insurance (Wohngebäudeversicherung)
This insurance is relevant to homeowners, particularly those who own single-family homes or condominiums. It covers:
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Structural damage from fire, storms, hail, lightning, and water damage from burst pipes
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Roof, walls, windows, fixed installations (e.g., heating systems)
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Optional coverage for natural disasters (e.g., floods, landslides, earthquakes through extended coverage called Elementarschadenversicherung)
B. Household Contents Insurance (Hausratversicherung)
This insurance is suitable for both homeowners and renters. It covers personal belongings such as:
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Furniture, electronics, clothing, kitchen appliances, and valuables
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Losses due to fire, water damage, theft, storm, burglary, vandalism, and explosions
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Damaged or stolen bicycles (often optional)
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Temporary relocation costs (e.g., hotel stays if the property becomes uninhabitable)
C. Personal Liability Insurance (Privathaftpflichtversicherung)
While not strictly home insurance, this type is essential in Germany. It protects you if you accidentally cause damage to someone else’s property or if someone is injured on your property due to negligence.
D. Glass Insurance (Glasversicherung)
Optional but common, this covers interior and exterior glass surfaces, such as windows, doors, glass tables, shower partitions, and ceramic cooktops.
3. What Is Covered in a Standard Policy?
Each insurance policy comes with its own set of terms and exclusions, but here is a general idea of what you can expect:
| Type | Standard Coverage |
|---|---|
| Building Insurance | Fire, storm, burst pipes, hail, lightning, vandalism to structure |
| Contents Insurance | Theft, water damage, fire, storm, burglary, electrical surge |
| Liability Insurance | Property damage or personal injury caused to third parties |
Optional add-ons may include natural hazard coverage, bicycle protection, accidental damage, legal protection, and coverage for items outside the home.
4. Cost of Home Insurance in Germany
Home insurance costs in Germany are generally affordable, but they vary depending on the type of property, its value, location, and coverage scope.
A. Residential Building Insurance
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Average cost: €150–€350 per year for a standard single-family home
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Influencing factors: Building age, size, construction material, location (risk of flooding, crime rates)
B. Household Contents Insurance
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Average cost: €50–€150 per year for coverage up to €50,000
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Influencing factors: Property size, location, value of belongings
C. Liability Insurance
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Average cost: €30–€80 per year
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Often includes worldwide coverage and high liability limits (e.g., up to €10 million)
5. Understanding "Neuwert" and "Zeitwert"
German insurance policies often distinguish between:
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Neuwert (replacement value): The cost to replace an item with a brand-new one of the same type and quality
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Zeitwert (current value): The depreciated value of the item based on age and wear
Most modern home insurance policies provide Neuwert coverage, which is more advantageous to the insured party.
6. Home Insurance for Renters in Germany
If you're renting a home or apartment in Germany, you are not responsible for the building insurance, but it’s highly advisable to have Hausratversicherung for your personal belongings.
Landlords typically carry their own Wohngebäudeversicherung, but their policies do not cover tenant property.
Additionally, renters are strongly encouraged to have Privathaftpflichtversicherung, especially in cases like:
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Flooding the neighbor’s apartment
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Accidental fire caused by negligence
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Damage to rented furniture or appliances
7. How to Choose the Right Policy
When selecting home insurance, it’s important to consider:
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Coverage amount: Ensure your sum insured accurately reflects the value of your home or belongings
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Deductible (Selbstbeteiligung): Higher deductibles reduce premiums but increase out-of-pocket expenses
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Inclusions and exclusions: Carefully read what’s covered and what’s not
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Premium structure: Are payments monthly, quarterly, or annual?
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Bonus systems: Some insurers offer no-claim discounts or loyalty bonuses
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Multilingual support: Essential for expats who prefer English-speaking customer service
8. Major Home Insurance Providers in Germany
Some of the most popular and reliable insurance companies 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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HDI
Many of these providers offer online calculators, multilingual contracts, and bundling discounts with other types of insurance (e.g., car, legal, or travel insurance).
9. Filing a Claim
The claims process in Germany is relatively straightforward:
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Report the incident immediately to your insurance provider
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Document the damage with photos, receipts, and a list of lost or damaged items
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File a police report, if the claim involves theft or burglary
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Submit a claim form, typically available online or through your insurer's mobile app
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Wait for inspection (if necessary), followed by approval and compensation
Make sure not to dispose of damaged items until the insurer gives permission.
10. Home Insurance and Natural Disasters
Due to climate change, Elementarschädenversicherung (natural hazard insurance) is becoming more popular. This additional coverage includes:
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Floods and heavy rainfall
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Landslides
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Earthquakes
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Snow pressure or avalanches
While not included in most standard building policies, it's highly recommended in high-risk areas like parts of Bavaria, Saxony, or near river basins.
11. Home Office and Business Use
With remote work becoming common, many residents now use part of their home as a home office. Some policies offer:
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Coverage for office equipment (computers, printers)
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Extended liability in case a client is injured on your property
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Optional business liability add-ons for freelancers and self-employed workers
12. Conclusion
Home insurance in Germany provides robust and affordable protection for homeowners and renters alike. Whether you're protecting the physical structure, your personal belongings, or guarding against liability, having the right coverage offers peace of mind and financial stability.
Though not all forms of home insurance are required by law, skipping them can be a costly mistake. In a country where administrative systems are efficient and structured, having proper coverage is part of being a responsible resident.
Whether you live in a small Berlin apartment or own a house in the Bavarian countryside, investing in well-structured home insurance is one of the smartest decisions you can make.