HOME INSURANCE IN GERMANY: A COMPLETE GUIDE TO COVERAGE, TYPES, AND HOMEOWNER PROTECTION
Germany is known for its structured systems, high living standards, and a strong focus on safety and responsibility. One essential part of homeownership or even tenancy in Germany is having proper home insurance. While not always legally required, home insurance in Germany is considered a crucial part of protecting one's property, possessions, and financial well-being against damage, theft, or liability.
This comprehensive article explores everything you need to know about home insurance in Germany, including types of insurance, who needs it, what it covers, average costs, and how to choose the right policy.
1. The Importance of Home Insurance in Germany
In Germany, owning or renting a home involves numerous responsibilities, including protecting it against potential risks such as fire, theft, water damage, and vandalism. Home insurance ensures that in the event of a loss or disaster, the financial burden does not fall entirely on the homeowner or tenant.
While not mandated by law, many mortgage providers require insurance for financed properties, and landlords often expect tenants to have liability or contents coverage.
2. Types of Home Insurance in Germany
Home insurance in Germany is typically categorized into two main types, each covering different aspects of homeownership or tenancy.
a. Wohngebäudeversicherung (Building Insurance)
This type of insurance is intended for property owners (i.e., homeowners or landlords) and covers damage to the physical structure of the home.
Covers:
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Fire damage
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Storm and hail
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Lightning strikes
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Burst pipes and water damage (from inside the building)
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Natural disasters (depending on the policy)
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Roofs, walls, floors, ceilings, and permanent fixtures
Does not cover: Personal belongings inside the house.
This insurance is often required by banks if the property is financed with a mortgage.
b. Hausratversicherung (Household Contents Insurance)
This insurance covers personal belongings inside the home and is available to both homeowners and renters.
Covers:
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Furniture, clothing, electronics, kitchen appliances
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Theft and burglary
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Fire, smoke damage
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Water damage (from within the building)
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Storm and hail damage
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Vandalism
This is the most commonly purchased home-related insurance policy in Germany, especially among renters.
3. Additional Coverage Options and Add-Ons
Depending on the location and risk level, German insurers offer optional add-ons that extend the basic policies:
a. Elementarschadenversicherung (Natural Hazard Insurance)
This covers natural disasters that are not typically included in standard building or contents insurance:
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Floods
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Earthquakes
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Landslides
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Heavy rain
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Avalanches
Important: In areas prone to flooding or weather extremes, this add-on may be highly recommended.
b. Glasversicherung (Glass Insurance)
Covers damage to windows, glass doors, ceramic cooktops, mirrors, and glass furniture.
c. Bicycle Theft Insurance
Covers bicycles stolen from inside or outside the home. Often included as an optional extension to household contents insurance.
d. Home Liability Insurance (Privathaftpflichtversicherung)
While technically separate, this type of insurance is essential in Germany. It covers personal liability, including if you cause damage to someone else’s property or if someone is injured on your premises.
4. Who Needs Home Insurance in Germany?
Homeowners
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Building insurance is highly recommended and often required by mortgage lenders.
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Contents insurance is optional but protects personal belongings.
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Liability insurance is strongly encouraged.
Tenants
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Landlords are responsible for insuring the building.
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Tenants are advised to have contents insurance.
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Personal liability insurance is a must-have for protecting against accidental damages.
Landlords
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Should have building insurance and may require tenants to have contents/liability insurance.
5. What Is Covered – and What Isn’t
Typical Coverage:
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Fire and smoke damage
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Water leaks from plumbing
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Theft and break-ins
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Vandalism
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Storm and hail
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Fallen trees
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Short-circuits and electrical fires
Exclusions (Depending on Policy):
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Gradual damage (e.g., mold from poor ventilation)
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War or nuclear incidents
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Damage caused intentionally
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Poor maintenance issues
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Flood damage (unless elementar coverage is included)
Reading the terms and conditions (Allgemeine Versicherungsbedingungen, AVB) is critical to understanding the scope and limitations of each policy.
6. Cost of Home Insurance in Germany
Home insurance costs vary depending on several factors:
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Type of insurance (building vs. contents)
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Value of property or contents
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Location (rural vs. city, flood-prone areas)
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Size of home or apartment
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Security measures (alarms, window locks)
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Coverage level and deductible amount
Average Costs:
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Household contents insurance: €50–€150 per year for an apartment
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Building insurance: €200–€800 per year for a standalone house
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Natural hazard coverage: Additional €100–€200 depending on risk
Opting for a higher deductible usually lowers the annual premium.
7. How to Get Home Insurance in Germany
Getting home insurance is relatively straightforward. Most companies offer online applications and quotes.
Steps:
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Choose the type of insurance: Building, contents, or both.
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Compare providers: Look at price, coverage, and reviews.
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Request a quote: Online or via an insurance agent.
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Provide details: Address, property value, security features, etc.
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Select coverage level: Decide on add-ons and deductibles.
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Sign the policy: Once approved, you’ll receive a contract and policy number.
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Start coverage: Some policies begin immediately; others on a set date.
8. Major Home Insurance Providers in Germany
Some of the leading insurance companies offering home insurance in Germany include:
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Allianz
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AXA
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HUK-Coburg
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DEVK
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R+V Versicherung
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LVM
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CosmosDirekt
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Gothaer
Each offers slightly different pricing structures and benefits, so comparison is key.
9. Filing a Claim
In the event of damage or theft, it’s important to act quickly:
Steps:
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Secure the scene: Prevent further damage if possible.
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Document everything: Take photos, make lists of affected items.
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Notify the police: Required in cases of theft or vandalism.
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Contact your insurer: File a claim via phone, online, or app.
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Provide documentation: Receipts, photos, police report, etc.
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Wait for inspection or approval: Some cases may require a visit from an assessor.
Payouts are usually made by bank transfer, and repairs or replacements can be coordinated through approved partners.
10. Tips for Choosing the Right Policy
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Assess risks: Consider natural hazards, theft rates, and location.
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Calculate item value accurately: Underestimating contents may reduce compensation.
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Check limits: Some items like jewelry or electronics may have coverage limits.
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Review exclusions: Know what is not covered before committing.
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Compare multiple offers: Use comparison websites or brokers.
11. Conclusion
Home insurance in Germany is a smart and often necessary investment for both property owners and renters. While not always legally required, it provides crucial protection against unexpected events such as fire, theft, or storm damage. With a wide variety of policy types and providers, residents can tailor coverage to their needs and budget.