Home Insurance in Germany: A Complete Guide

Germany is known for its strong legal structure, well-developed insurance market, and an emphasis on personal responsibility. Among the many types of insurance available, home insurance is one of the most important for anyone owning or renting a property. With unpredictable weather, increasing property values, and rising risks like burglary or fire, home insurance in Germany plays a vital role in protecting both your property and your peace of mind.

Whether you're a German resident, a foreigner buying property, or a tenant renting an apartment, this comprehensive guide will walk you through everything you need to know about home insurance in Germany — types of coverage, legal aspects, costs, and how to choose the right policy.

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1. What Is Home Insurance in Germany?

In Germany, the term "home insurance" generally refers to two distinct types of coverage:

1. Homeowners Insurance (Wohngebäudeversicherung) – for property owners.

2. Household Contents Insurance (Hausratversicherung) – for tenants and homeowners alike.

These policies serve different purposes and are often purchased separately or as part of a combined insurance package.

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2. Homeowners Insurance (Wohngebäudeversicherung)

This insurance covers the physical structure of a property, including the building itself and permanently installed items such as heating systems, windows, or flooring.

What It Covers:

• Fire damage

• Water damage from burst pipes (Leitungswasserschäden)

• Storm and hail damage (from winds ≥ 62 km/h)

• Natural events (if extended to Elementarschäden coverage)

Optional Add-Ons:

• Floods, earthquakes, landslides (Elementarversicherung)

• Glass breakage

• Vandalism

Who Needs It?

Anyone who owns a property in Germany should have this insurance. It is not legally required, but highly recommended, especially since mortgage lenders usually mandate it as part of the loan agreement.

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3. Household Contents Insurance (Hausratversicherung)

This policy covers movable items within your home, such as furniture, electronics, clothing, appliances, and valuables.

What It Covers:

• Theft and burglary

• Fire and smoke damage

• Storm and hail damage

• Water damage (from plumbing)

• Vandalism after break-ins

• Damage from falling trees or other debris

Important Details:

• Coverage is typically based on the value of your household contents, often estimated at €650 per square meter.

• Policies also cover stolen bikes (when locked), and some offer protection abroad (e.g., hotel thefts).

Who Needs It?

Hausratversicherung is not mandatory but is extremely common in Germany, even among renters. It's especially recommended in urban areas where burglary is more frequent.

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4. Liability Coverage and Other Add-Ons

Though not part of traditional home insurance, many people in Germany also carry private liability insurance (Privathaftpflichtversicherung) to protect against claims if, for example, a guest is injured in their home. This coverage can be bundled with home insurance packages.

Other popular add-ons include:

• Legal expenses insurance (Rechtsschutzversicherung)

• Glass insurance (Glasversicherung)

• Bicycle theft coverage

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5. Natural Disasters: Elementarschäden Coverage

Standard home insurance typically does not cover "acts of God" (e.g., floods, earthquakes). With increasing climate volatility, it's wise to add Elementarversicherung for protection against:

• Floods (from heavy rain or river overflow)

• Snow pressure

• Earthquakes

• Landslides or sinkholes

As of recent years, the Bundesländer (federal states) in Germany have been urging homeowners to include this extra coverage due to rising cases of severe weather events.

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6. Cost of Home Insurance in Germany

The cost of home insurance varies significantly based on several factors:

Pricing Factors for Homeowners Insurance:

• Size and value of the building

• Location (risk zone for floods or storms)

• Construction materials

• Year of construction or renovation

• Security measures (alarms, shutters)

Pricing Factors for Household Contents Insurance:

• Living space (square meters)

• Value of household items

• Location and burglary risk

• Chosen deductible

• Added coverage (e.g., bikes, glass)

Average Costs:

• Wohngebäudeversicherung: €150 – €500 per year

• Hausratversicherung: €50 – €200 per year

Bundled plans and multi-policy discounts can reduce these costs.

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7. Major Insurance Providers in Germany

Germany has a robust insurance market with many reputable companies offering home insurance. Some of the leading providers include:

• Allianz

• AXA

• HUK-Coburg

• DEVK

• R+V Versicherung

• Gothaer

• LVM

• Check24 & Verivox (comparison platforms)

Many offer online tools for estimating premiums and customizing coverage, and most provide customer support in English for international clients.

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8. How to Choose the Right Policy

Tips:

• Assess the real value of your property or contents — underinsurance may lead to reduced payouts.

• Compare providers and quotes using platforms like Check24 or Verivox.

• Check customer reviews for claims processing quality.

• Understand the deductible (Selbstbeteiligung) — a higher deductible lowers premiums but increases out-of-pocket risk.

• Review exclusions carefully, especially for natural disasters or theft conditions.

• Confirm what’s included in the basic plan and what costs extra.

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9. Making a Claim

If damage occurs, here’s what you need to do:

1. Notify your insurer immediately – delays may invalidate your claim.

2. Document the damage with photos, receipts, and police reports if applicable.

3. Prevent further damage (e.g., cover broken windows or shut off water valves).

4. Allow inspection – insurers often send assessors for serious claims.

5. Submit all required documents as per your policy’s claims process.

Some policies also include emergency assistance, like immediate water extraction or temporary accommodation.

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10. Insurance for Expats and Tenants

Germany is home to a large expat community. Whether you're renting a flat in Berlin or buying a home in Munich, insurance is accessible and available in English from many providers.

Key Tips for Expats:

• Household contents insurance is renter-friendly – it protects your personal belongings even in a shared flat.

• Landlords may require insurance for certain properties.

• Some insurers accept foreign IDs or passport copies during application.

• Many comparison sites now offer bilingual services and expat-focused support.

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11. Legal Aspects and Regulations

Home insurance contracts in Germany are governed by the Insurance Contract Act (Versicherungsvertragsgesetz, VVG). The VVG requires:

• Transparent terms and fair treatment.

• A cancellation window (usually 14 days).

• Clear explanation of deductibles, premiums, and exclusions.

Policies typically run for one year and renew automatically unless canceled in writing at least one month before renewal.

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12. Climate Change and Insurance Trends

Germany has seen a surge in severe weather events, especially floods like the 2021 Ahr Valley disaster. As a result:

• Insurance premiums in high-risk areas have increased.

• More homeowners are opting for Elementar coverage.

• The government is debating making natural disaster coverage mandatory.

Insurers are also investing in digital tools, smart home integration, and climate risk assessment models to adapt to this new reality.

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Conclusion

Home insurance in Germany is not just a safety net — it’s a practical and essential investment in protecting your living space and financial stability. Whether you're a property owner or a renter, choosing the right policy gives you security against unexpected damages, natural disasters, and theft.

While it may not be legally required in all cases, home insurance is strongly recommended and widely adopted. By understanding the different types of coverage, knowing what influences costs, and choosing a reputable provider, you can ensure that your home — and everything in it — is well protected.