Home Insurance in Germany: A Comprehensive Guide

Germany is known for its order, efficiency, and thorough approach to everyday life—and home insurance is no exception. Whether you’re a homeowner, a tenant, or a landlord, understanding the home insurance system in Germany is essential for protecting your property and belongings. This guide explores the types of home insurance available, what they cover, legal requirements, average costs, and tips for selecting the right policy.

1. Understanding Home Insurance in Germany

In Germany, home insurance generally refers to two main types of coverage:

• Residential Building Insurance (Wohngebäudeversicherung) – for homeowners

• Household Contents Insurance (Hausratversicherung) – for both homeowners and renters

a. Wohngebäudeversicherung (Building Insurance)

This type of insurance covers physical damage to the structure of the building caused by:

• Fire

• Storms and hail

• Burst pipes or water damage

• Natural disasters (optional via Zusatzversicherung)

It is typically mandatory for homeowners with a mortgage, as lenders require proof of building insurance to issue a loan.

b. Hausratversicherung (Household Contents Insurance)

Hausratversicherung protects your movable property inside the home. This includes:

• Furniture

• Electronics

• Clothing

• Appliances

• Personal items

Coverage usually applies to events like:

• Fire and smoke

• Theft and burglary

• Water damage

• Vandalism

• Natural disasters (if added)

This type of insurance is optional but highly recommended for both homeowners and renters.

2. Is Home Insurance Mandatory in Germany?

Home insurance is not legally required in Germany. However:

• Building insurance is often required by banks when applying for a home loan.

• Contents insurance is optional, but many landlords suggest tenants have it.

Though not compulsory by law, the risks of being uninsured (especially in cases of fire, water damage, or theft) make it a wise investment.

3. What Does Home Insurance Cover?

a. Building Insurance Coverage

Basic Wohngebäudeversicherung usually includes:

• Main structure of the house

• Built-in fixtures (e.g., kitchen cabinets, heating systems)

• Garages and carports (if attached)

• Storm and hail damage

• Burst water pipes

• Fire and lightning

Optional add-ons include:

• Natural hazard insurance (Elementarschadenversicherung) – covers floods, earthquakes, landslides, etc.

• Glass breakage insurance (Glasversicherung)

b. Household Contents Insurance Coverage

Hausratversicherung covers:

• Personal belongings inside the home

• Items stored in garages or cellars (with limitations)

• Damage caused during burglaries

• Loss due to fire, smoke, and explosions

• Water leakage from plumbing

• Replacement costs (not current value)

Policies often include a liability coverage for rented furniture or damage to third-party property.

4. Average Cost of Home Insurance in Germany

The cost of home insurance depends on various factors:

• Type and size of property

• Location and risk of natural disasters

• Level of coverage and additional options

• Property value or contents value

• Security measures (alarms, fire detectors, etc.)

a. Building Insurance Costs

On average, building insurance in Germany can range from:

• €200 to €500 annually for a standard single-family home

• Higher premiums apply for homes in high-risk flood or storm zones

b. Household Contents Insurance Costs

Contents insurance costs are typically:

• €40 to €150 per year

• Based on estimated contents value (usually €650 per square meter is used as a benchmark)

Example: A 70 m² apartment might require a coverage of €45,500, leading to a premium around €80/year.

5. Choosing the Right Insurance Provider

Germany has a wide array of insurance companies offering home insurance. Popular names include:

• Allianz

• AXA

• HUK-Coburg

• DEVK

• R+V Versicherung

• Gothaer

• LVM

When comparing policies, consider the following:

• Covered events and exclusions

• Replacement value vs. current value

• Deductibles (Selbstbeteiligung)

• Claims process

• Add-ons for natural disaster protection

Using online comparison platforms like Check24, Verivox, or Finanztip can simplify the process.

6. How to File a Claim

If an incident occurs, follow these steps to file a claim:

1. Document the damage with photos or videos.

2. Notify the police in case of burglary or vandalism.

3. Contact your insurer immediately, ideally within 24–48 hours.

4. Submit all required documents, including invoices, receipts, and police reports.

5. Allow inspection, if requested by the insurance company.

Delays or missing documents can lead to reduced or denied payouts.

7. Tips for Getting the Best Home Insurance Deal

• Bundle policies: Some insurers offer discounts if you combine building and contents insurance.

• Increase deductibles: A higher deductible can reduce your premium.

• Install safety devices: Alarms, smoke detectors, and secure locks may earn discounts.

• Avoid over-insuring: Accurately estimate the value of contents to avoid overpaying.

• Review your policy annually: Update coverage if you buy new items or renovate.

8. Special Considerations

a. Natural Hazard Insurance (Elementarschäden)

Given increasing risks of floods and storms in parts of Germany, insurers now offer Elementarschadenversicherung, which covers:

• Floods

• Earthquakes

• Landslides

• Snow pressure

• Subsidence

This is not standard in most policies and must be added. It’s especially relevant in areas like Bavaria, North Rhine-Westphalia, and Saxony, which have experienced recent flooding.

b. Tenant Insurance and Landlord Requirements

Landlords in Germany cannot force tenants to buy contents insurance, but they can require liability insurance (Haftpflichtversicherung). In case a tenant causes damage to the property, liability insurance covers repair costs.

9. English-Speaking Insurance Services in Germany

Expats and international residents might face difficulties dealing with German-language policies. Fortunately, several insurers and brokers cater to English speakers:

• Feather Insurance

• Getsafe

• Coya (now part of Luko)

• Allianz (with English support)

These platforms offer user-friendly digital tools, online claims, and policies written in plain English.

10. Final Thoughts

Home insurance in Germany is an important safety net for property owners and renters alike. While not mandatory, having the right coverage can save thousands of euros in unexpected expenses. Understanding the types of insurance available, the average costs, and what to expect during the claims process empowers you to make an informed decision.

Before choosing a policy, assess your risk factors, evaluate your property’s value, and shop around for quotes. With a little research, you can secure reliable home insurance that provides peace of mind in your daily life in Germany.