Owning or renting a home in Germany comes with responsibilities—and one of the most important is ensuring your property and belongings are financially protected. While Germany is known for safety and stability, risks like fire, storms, theft, and water damage can cause major financial losses. That’s where home and property insurance comes in.
Insurance is deeply ingrained in German life, and many residents consider certain home-related policies absolutely essential. Whether you are a tenant, homeowner, or expat, understanding the types of home and property insurance in Germany will help you secure peace of mind.
1. Why Home and Property Insurance is Important
Germany experiences varied weather conditions, from winter storms and floods to summer heat waves. Additionally, urban areas are not immune to burglaries or accidents caused by tenants. Even a small incident—like a burst pipe or a broken window—can cost thousands of euros.
Insurance provides:
- Financial protection: Covers the cost of repair or replacement.
- Legal security: Prevents liability disputes with landlords or neighbors.
- Peace of mind: Ensures you don’t bear the entire financial burden of accidents or natural disasters.
2. Key Types of Home and Property Insurance in Germany
There isn’t just one single policy for homes. Instead, several types of insurance cover different aspects of property and liability.
a. Household Insurance (Hausratversicherung)
This is the most common type of home insurance in Germany, especially for tenants. It protects the contents of your home.
Coverage includes:
- Furniture and appliances.
- Electronics (TVs, laptops, phones).
- Clothing and personal belongings.
- Jewelry, art, and valuables (to a certain limit).
Covered risks usually include:
- Fire damage.
- Water damage from burst pipes.
- Storm and hail damage.
- Theft or burglary.
- Vandalism after break-ins.
Example: If a break-in occurs and your laptop, bicycle, and jewelry are stolen, household insurance will reimburse you for the value.
b. Building Insurance (Wohngebäudeversicherung)
This policy is for property owners rather than tenants. It covers the physical structure of a house or building.
Coverage includes:
- Damage to walls, roof, windows, and floors.
- Fire, storm, hail, or flood damage.
- Burst pipes and water leaks.
Building insurance is often required when taking out a mortgage, as banks want assurance their investment is protected.
Example: If a fire damages your kitchen or a storm destroys your roof, building insurance covers the repair costs.
c. Liability Insurance (Privathaftpflichtversicherung)
While not legally required, private liability insurance is considered essential by most Germans. It protects you financially if you accidentally cause damage to someone else’s property.
Examples:
- You spill red wine on a friend’s expensive sofa.
- Your child breaks a neighbor’s window.
- Your dog damages another person’s garden.
Liability claims can reach tens of thousands of euros—or more—making this one of the most valuable and affordable policies (often only €5–€10 per month).
d. Natural Hazard Insurance (Elementarversicherung)
A growing number of Germans are adding this optional coverage due to climate change. It protects against natural disasters not always included in standard building insurance.
Covers:
- Flooding.
- Earthquakes.
- Avalanches and landslides.
- Snow pressure damage.
In areas prone to flooding, some insurers may charge higher premiums or exclude coverage altogether.
e. Glass Insurance (Glasversicherung)
This is a niche add-on but popular with households featuring large windows, glass doors, or aquariums. It covers replacement costs for broken glass.
3. Who Needs Which Insurance?
- Tenants: At minimum, household insurance and private liability insurance are strongly recommended. Landlords often expect tenants to have liability insurance in case of accidental damage.
- Homeowners: Building insurance is a must, and household insurance protects personal belongings. Natural hazard insurance is worth considering in flood-prone areas.
- Expats: Expats renting apartments should prioritize household and liability insurance, as these provide essential protection at affordable costs.
4. Costs of Home and Property Insurance
Premiums depend on several factors:
- Size of the property.
- Location (urban vs. rural, flood-risk areas).
- Value of belongings.
- Desired coverage (basic vs. extended).
Average Costs in 2025:
- Household insurance: €50–€150 per year.
- Building insurance: €300–€1,000 per year (depending on property value).
- Private liability insurance: €60–€120 per year.
- Natural hazard insurance: €100–€300 per year.
Compared to the potential financial loss, these premiums are relatively low.
5. Common Exclusions and Limitations
Like any insurance, home policies in Germany have exclusions. Common ones include:
- Negligence (leaving windows open during a storm).
- Damage from wear and tear.
- Flooding, unless you have natural hazard coverage.
- Very high-value items (art, luxury watches) unless declared separately.
It’s crucial to read the fine print or consult an insurance broker to ensure your valuables are fully protected.
6. How to Choose the Right Policy
With many insurers and comparison portals available, it can be overwhelming to choose. Here are some tips:
- Assess your needs: Do you rent or own? Do you live in a flood-risk area?
- Use comparison platforms: Websites like Check24 and Verivox allow side-by-side policy reviews.
- Consider deductible levels: A higher deductible reduces premiums but increases out-of-pocket costs in claims.
- Check coverage limits: Ensure high-value items are adequately insured.
- Look for customer support in English: Especially important for expats who may not be fluent in German.
7. Insurance for Expats and International Students
Many expats underestimate the importance of liability and household insurance. While health and car insurance are mandatory, home-related insurance is often optional but highly recommended.
Expats renting furnished apartments or student dorms especially benefit from household insurance, as landlords may hold tenants responsible for damages caused by accidents like water leaks or fire.
Some international-friendly insurers offer policies in English, making it easier for newcomers to understand terms and conditions.
8. Real-Life Scenarios
- Tenant Case: Anna, a student in Munich, left a candle burning, which caused smoke damage in her apartment. Her household insurance covered the cleanup costs, preventing financial strain.
- Homeowner Case: Markus, a homeowner in Hamburg, suffered storm damage to his roof. Building insurance paid for repairs worth €15,000.
- Expat Case: John, an expat in Berlin, accidentally flooded his neighbor’s apartment when his washing machine hose burst. His liability insurance covered the €8,000 damages.
These examples highlight why home and property insurance is a financial lifesaver.
9. Final Thoughts
Home and property insurance in Germany is not legally mandatory in most cases, but it is highly recommended. Whether you rent a small apartment, own a family home, or are new to Germany as an expat, having the right coverage can protect you from unexpected financial shocks.
- Tenants should prioritize household and liability insurance.
- Homeowners should never skip building insurance, ideally combined with natural hazard coverage.
- Expats benefit from affordable, flexible policies available in English.
In a country where responsibility and preparedness are valued, home and property insurance is more than just paperwork—it’s peace of mind.