Home Insurance in Germany: Everything You Need to Know

Germany is known for its strong legal framework, efficient systems, and a high standard of living. One aspect that reflects this well-ordered society is its comprehensive approach to insurance. Among the many types of coverage available, home insurance stands out as a fundamental protection for homeowners and tenants alike. Whether you’re purchasing your first house in Berlin, renting an apartment in Munich, or relocating as an expat, understanding how home insurance works in Germany is crucial.

This in-depth guide explores the types of home insurance, legal requirements, coverage options, costs, claims process, and practical tips for navigating the insurance market in Germany.

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1. What Is Home Insurance in Germany?

In Germany, home insurance is not a single, unified policy. Instead, it typically falls into two main categories:

• Residential Building Insurance (Wohngebäudeversicherung) – for homeowners who own the building.

• Household Contents Insurance (Hausratversicherung) – for both homeowners and tenants to cover personal belongings inside the property.

While home insurance is not legally mandatory, it is strongly recommended and often required by banks when financing a mortgage. It provides critical financial protection against unexpected damage caused by fire, water leaks, storms, burglary, and more.

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2. Residential Building Insurance (Wohngebäudeversicherung)

This type of insurance is specifically for homeowners who own the structure of the building. It covers the physical components of the property—walls, roof, floors, and permanently installed fixtures like heating systems and built-in kitchens.

What It Covers:

• Fire and lightning damage

• Storm and hail damage (typically above wind force 8)

• Water damage from burst pipes

• Explosion or implosion

• Damage from falling trees or structural collapse

Optional Add-ons:

• Natural hazard coverage (Elementarschäden): Includes floods, earthquakes, landslides, and heavy rain.

• Vandalism or malicious damage

• Glass insurance: Covers broken windows or doors.

Who Needs It:

Anyone who owns a residential property—whether it's a detached house, a semi-detached home, or an apartment within a shared building—is responsible for insuring the structure.

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3. Household Contents Insurance (Hausratversicherung)

Household contents insurance is widely used in Germany, even by renters. It protects personal belongings that are not part of the building’s structure. In case of theft, fire, water damage, or other perils, this policy reimburses the value of your possessions.

What It Covers:

• Furniture, electronics, and clothing

• Appliances and kitchenware

• Valuables such as jewelry (up to a certain limit)

• Bicycles (often as an add-on)

• Storage contents (e.g., basement or garage items)

Risks Covered:

• Fire and smoke damage

• Water damage (e.g., from leaking washing machines or burst pipes)

• Burglary, theft, and vandalism

• Storms and hail

Not Covered:

• Wear and tear

• Damage caused intentionally

• Floods or earthquakes (unless you add natural hazard coverage)

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4. Liability Insurance for Property Owners (Haus- und Grundbesitzerhaftpflicht)

While not always included in home insurance packages, this is an important third type to be aware of—especially if you rent out property or own land. It covers the property owner’s liability if someone is injured on your premises due to poor maintenance (e.g., slipping on icy stairs or a falling roof tile).

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5. Is Home Insurance Mandatory in Germany?

Home insurance is not required by German law. However:

• Banks require building insurance when issuing a mortgage.

• Landlords may require household contents insurance for tenants as part of the rental agreement.

• Liability insurance is strongly recommended but also voluntary.

Despite the lack of legal obligation, more than 75% of households in Germany have some form of home insurance.

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6. Costs of Home Insurance in Germany

The price of home insurance depends on several factors:

For Building Insurance:

• Type, size, and age of the building

• Location and regional risk factors (e.g., flood-prone areas)

• Construction materials

• Coverage level and deductibles

• Additional coverage (e.g., natural disasters)

Average annual cost: €200–€800

For Contents Insurance:

• Size of the property (measured in m²)

• Estimated value of contents

• Location and crime rate in the area

• Chosen deductible

• Coverage options (e.g., bicycle theft, valuables)

Average annual cost: €50–€200

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7. How to Choose the Right Insurance Provider

Germany has a competitive insurance market with many reputable providers. Some of the most well-known companies include:

• Allianz

• AXA

• HUK-Coburg

• DEVK

• R+V Versicherung

• Gothaer

• LVM

• Getsafe (digital, English-friendly)

• Feather Insurance (for expats)

Things to Consider:

• Is the provider expat-friendly and offers contracts in English?

• Are natural disasters included or need separate coverage?

• What is the claims process like?

• What is the deductible amount?

• Can you manage the policy online?

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8. How to File a Claim

In case of damage or theft:

1. Contact your insurer immediately.

2. Take photos of the damage or stolen items.

3. File a police report if required (especially for theft or vandalism).

4. Fill out the claim form provided by your insurer.

5. Keep receipts or proof of ownership for valuables and appliances.

6. Your insurer may send an expert to assess the damage.

Claims are usually processed quickly if the documentation is complete. Delays occur mainly when evidence is missing or the claim is unusually large.

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9. Tips to Lower Your Premium

• Bundle insurance policies (e.g., home + liability) for a discount.

• Install security systems, smoke detectors, or safes.

• Choose a higher deductible to reduce your annual premium.

• Regularly review your policy for unnecessary coverage.

• Use comparison websites like Check24, Verivox, or Tarifcheck.

• Avoid over-insuring; ensure your content value estimate is accurate.

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10. Home Insurance for Expats

Germany is home to millions of expatriates, and many insurers now cater to international residents.

What Expats Should Know:

• You can get insurance even without full permanent residence.

• Some companies offer contracts in English and digital platforms.

• No-claims bonuses from other countries may not always be transferable.

• Some insurers (like Feather or Getsafe) are tailored for digital natives and English speakers.

It’s advisable to secure Hausratversicherung when moving into a rental property and Wohngebäudeversicherung if you purchase a home. Also consider private liability insurance, which is extremely popular and protects you from many personal liability risks.

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Conclusion

Home insurance in Germany is a critical part of financial planning, whether you're a homeowner or a tenant. While not always legally mandated, it offers indispensable protection against life’s uncertainties—from fire and theft to natural disasters and accidental damage.

With a wide range of options, comprehensive coverage plans, and an increasingly expat-friendly insurance market, securing the right home insurance in Germany is more accessible than ever. By understanding the different policy types, comparing providers, and assessing your needs carefully, you can ensure peace of mind and long-term protection for your property and belongings.