Home Insurance in Germany: A Complete Guide
Germany is known for its efficiency, high standard of living, and well-regulated markets—including the insurance industry. Whether you are a homeowner or a tenant in Germany, protecting your property and belongings through appropriate insurance is not just wise—it is often essential. Home insurance in Germany is comprehensive, affordable, and widely available, offering a strong safety net against a variety of risks, from fire and theft to natural disasters.
This article provides a detailed guide to home insurance in Germany, including the types of policies available, their coverage, legal requirements, average costs, how to choose a policy, and how to file a claim.
1. Understanding the Basics
Home insurance in Germany can be divided into two main types:
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Residential building insurance (Wohngebäudeversicherung): Designed for property owners to cover the structure of the home.
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Household contents insurance (Hausratversicherung): Designed to cover the movable contents inside the home—available for both tenants and homeowners.
Together, these two types of insurance create a comprehensive shield against the most common and costly damages that can affect a home or its contents.
2. Residential Building Insurance (Wohngebäudeversicherung)
What It Covers:
This type of insurance protects the physical structure of a house or building, including:
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Walls, roofs, floors
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Built-in fixtures like kitchens, bathrooms, and plumbing
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Garages, sheds, and other permanent structures
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Heating systems and solar panels
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Underground pipes and water connections (in most cases)
Risks Covered:
Most building insurance policies cover damage resulting from:
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Fire and explosion
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Lightning strikes
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Storms and hail
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Water damage from burst pipes
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Frost and ice-related issues
Optional add-ons can extend coverage to:
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Natural hazards (earthquakes, floods, landslides, etc.)
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Vandalism
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Glass breakage
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Damage from wild animals (especially martens)
Who Needs It:
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Homeowners: If you own a house or apartment, this insurance is essential and often mandatory when taking out a mortgage.
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Landlords: Building insurance protects rental properties from structural damage.
Tenants typically do not need this type of insurance, unless they own part of the building.
3. Household Contents Insurance (Hausratversicherung)
While building insurance covers the structure, household contents insurance covers everything inside that is movable and personally owned.
What It Covers:
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Furniture and furnishings
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Electronics and appliances
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Clothing and personal items
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Jewelry, art, and valuables (within policy limits)
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Bicycles (optional add-on for theft outside the home)
Risks Covered:
Household contents insurance usually includes:
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Fire and smoke damage
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Storm and hail
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Water damage from leaking pipes or appliances
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Theft and burglary
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Vandalism
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Electrical surges
Optional extensions may cover:
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Accidental damage
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Flood and natural disaster protection
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Glass breakage
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Bicycle theft outside the home
Who Needs It:
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Tenants: Highly recommended for renters to protect their personal property.
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Homeowners: Even if you own the home, household contents insurance is needed to cover your belongings.
4. Natural Hazard Insurance (Elementarversicherung)
Germany has experienced an increase in extreme weather events in recent years. As a result, many insurers offer optional coverage known as Elementarschadenversicherung, or natural hazard insurance.
What It Covers:
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Flooding from rivers or heavy rainfall
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Snow pressure and avalanches
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Earthquakes and landslides
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Volcanic eruptions
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Subsidence and sinkholes
This coverage is not automatically included in standard policies and must be purchased separately or as an add-on.
In areas prone to flooding, this insurance can be critical—and increasingly, mortgage providers are requiring it in high-risk zones.
5. Legal and Financial Considerations
Is Home Insurance Mandatory in Germany?
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Residential building insurance is not legally required but is contractually required by banks when a home is financed.
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Household contents insurance is optional by law but highly recommended.
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Landlords are not legally obligated to insure rental buildings, but most do so to protect their investment.
Landlord and Tenant Obligations
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Tenants are not responsible for damage to the building structure unless they caused it intentionally or through negligence.
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Tenants are responsible for damage to their own belongings and should insure them accordingly.
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In some cases, lease contracts may include clauses that pass certain responsibilities to the tenant, so it’s important to read the fine print.
6. Cost of Home Insurance in Germany
Home insurance in Germany is generally affordable, especially compared to potential losses.
Average Costs:
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Residential building insurance: €200–€500/year (for a typical house)
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Household contents insurance: €50–€300/year (depending on the value insured)
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Natural hazard add-on: €100–€300/year (depending on location and risk)
Premium Factors:
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Size and location of the home
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Building materials and condition
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Security systems (alarms, reinforced locks)
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Type of coverage and deductible (excess)
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Sum insured (total value of building or contents)
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Risk factors (flood zone, crime rate, etc.)
You can reduce premiums by choosing a higher deductible, improving home security, or bundling multiple insurance types with one provider.
7. How to Choose a Home Insurance Policy
When selecting a home insurance policy, consider the following:
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Coverage limits: Ensure the insured value is accurate to avoid underinsurance.
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Exclusions: Understand what is not covered by default.
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Customer service: Choose a provider with a strong reputation for claims handling.
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Add-ons: Decide if extras like glass protection or bicycle theft are needed.
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Deductible: Higher deductibles lower premiums but increase out-of-pocket costs in claims.
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German language support: Many providers offer contracts and customer service in English for expats.
You can compare offers using insurance brokers or online comparison platforms. Common providers include Allianz, AXA, HUK-Coburg, LVM, and R+V.
8. Filing a Claim
If you need to make a claim:
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Report damage immediately to your insurance company.
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Take photographs of the damage and gather evidence.
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Keep receipts for repair or replacement costs.
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Avoid disposing of damaged items before an inspection unless instructed.
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Submit a completed claim form, either online or via post, as requested by the insurer.
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Provide police reports for cases of theft or vandalism.
The insurer will assess the claim and determine compensation based on the policy terms. In some cases, an adjuster may visit the property.
9. Tips for Expats and Foreigners
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Choose English-speaking insurers or brokers who can help translate documents and explain terms.
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Read contracts carefully, especially regarding exclusions and claim limits.
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Notify your insurer if moving to ensure continued coverage during relocation.
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Understand your landlord’s insurance, so you know what is covered by them and what you need to insure yourself.
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Get natural hazard protection if living in flood-prone areas.
Germany’s insurance culture is robust and trusted, but navigating it as a non-German speaker requires attention and care.
10. The Future of Home Insurance in Germany
As climate change increases the frequency of floods, storms, and fires, insurers in Germany are adapting by:
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Promoting climate-resilient housing standards
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Offering dynamic pricing based on real-time risk data
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Expanding coverage for digital devices and smart homes
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Encouraging green rebuilding after claims (eco-friendly materials)
Home insurance will continue to evolve, offering more digital tools, faster claims processing, and tailored protection based on individual needs.
Conclusion
Home insurance in Germany is a critical part of securing your financial stability and peace of mind. Whether you are a tenant protecting your belongings or a homeowner safeguarding your investment, the right insurance policy can save you from devastating financial losses.
With a wide range of coverage options, affordable premiums, and a well-regulated market, Germany offers one of the most reliable home insurance systems in Europe. Understanding your rights, responsibilities, and the types of policies available ensures that you are well-prepared for any unforeseen events that may arise.