Home Insurance in Germany: A Complete Guide for Residents and Expats

Germany is known for its well-structured and efficient systems—including its insurance sector. If you own or rent a home in Germany, securing the right type of home insurance (Hausratversicherung and Wohngebäudeversicherung) is crucial for protecting your property and belongings. Whether you're a local resident or a new expat, understanding how home insurance works in Germany can save you significant costs, stress, and legal complications.

This article will provide a detailed overview of home insurance in Germany, explaining the types of coverage, costs, how to get insured, what to do in case of damage, and practical tips for choosing the right policy.

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1. Is Home Insurance Mandatory in Germany?

In Germany, home insurance is not legally required by law, but it is strongly recommended—and in some cases, it may be required by third parties like landlords or mortgage lenders.

There are two main categories:

• Household contents insurance (Hausratversicherung) – optional but highly recommended for renters and homeowners alike.

• Building insurance (Wohngebäudeversicherung) – essential for homeowners, and usually required by mortgage lenders.

While not mandatory by law, these insurances offer vital protection from unexpected events like fires, break-ins, storms, and floods.

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2. Types of Home Insurance in Germany

Understanding the two major types of home insurance in Germany is essential when selecting the right protection for your needs.

a) Hausratversicherung (Household Contents Insurance)

This insurance covers the movable contents of your home. It is recommended for both renters and owners and protects against:

• Fire

• Water damage (from burst pipes)

• Theft or burglary

• Vandalism

• Storm and hail damage

• Natural disasters (if extended)

Covered items include:

• Furniture

• Electronics

• Clothing

• Kitchen appliances

• Personal belongings

It usually includes replacement value, meaning the insurer will pay the cost of buying a new equivalent item—not just its depreciated value.

b) Wohngebäudeversicherung (Building Insurance)

This type of insurance is relevant for property owners (not renters). It covers the physical structure of the building, including:

• Walls

• Roof

• Floors

• Doors and windows

• Built-in components (e.g., kitchen units, heating systems)

It protects against damage from:

• Fire

• Water leaks

• Storms and hail

• Lightning strikes

• Explosions

Optional add-ons (called Elementarschäden) can cover:

• Flooding

• Earthquakes

• Landslides

• Snow pressure

• Sewer backup

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3. Why Home Insurance Is Important in Germany

Germany experiences a wide range of natural and man-made risks—such as severe storms, pipe bursts during winter, and burglaries—making home insurance highly valuable.

Here’s why it matters:

• Protects your belongings or investment (whether you rent or own)

• Financial security: Covers the cost of replacing stolen or damaged goods

• Peace of mind: Especially important for families and long-term residents

• Required for mortgages: Banks often insist on building insurance

• Covers temporary accommodation if your home becomes uninhabitable

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4. What Is Not Covered?

Home insurance does not cover everything. Exclusions can vary between providers, but typical non-covered situations include:

• Damage caused by negligence

• Wear and tear

• War or nuclear incidents

• Loss of items outside the home (unless optional travel or external coverage is added)

• High-value items (unless declared separately)

Always read the policy details to understand limitations and exclusions.

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5. How Much Does Home Insurance Cost in Germany?

The cost of home insurance in Germany varies depending on factors such as:

• Location (urban areas with high theft rates cost more)

• Size of your home

• Value of contents

• Type of building (material, age, condition)

• Additional coverage (natural disasters, glass, electronics, etc.)

• Claims history

Average Cost Estimates:

• Hausratversicherung (contents insurance):
  ~€50 to €150 per year for a standard apartment.

• Wohngebäudeversicherung (building insurance):
  ~€200 to €600 per year for a typical single-family home.

Some providers offer bundled discounts if you take out both types of policies.

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6. How to Get Home Insurance in Germany

Buying home insurance in Germany is a relatively easy process:

a) Determine What You Need

• Renters: Hausratversicherung is usually sufficient.

• Owners: Need both Hausratversicherung and Wohngebäudeversicherung.

b) Gather Information

• Address

• Size of the home (in square meters)

• Estimated value of belongings (for contents insurance)

• Construction year and material of the building (for building insurance)

c) Compare Providers

Major German home insurance companies include:

• Allianz

• HUK-Coburg

• AXA

• R+V

• Gothaer

• LVM

• DFV

• Getsafe (digital, app-based)

Use comparison websites such as:

• Check24.de

• Verivox.de

• Tarifcheck.de

d) Apply Online or Via Agent

Most insurers offer online applications. Some may request a home inspection for high-value properties.

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7. What to Do in Case of a Claim

When something goes wrong, follow these steps:

1. Report the incident to your insurance company immediately.

2. Document the damage: Take photos and list all affected items.

3. File a police report if the damage is due to theft, burglary, or vandalism.

4. Avoid repairs or clean-up until the insurer inspects the damage, unless it’s an emergency.

5. Submit all documents requested by the insurer, including purchase receipts if available.

Most insurers offer English-language customer service or digital apps to streamline the process.

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8. Special Notes for Expats and International Residents

• You do not need German citizenship to get insured.

• Some providers offer policies in English or multilingual customer support.

• Renters should clarify with landlords what is covered by the building insurance.

• When moving to Germany, arrange insurance as soon as you sign a lease or buy a property.

• Consider travel insurance or personal liability insurance (Haftpflichtversicherung) as additional protections.

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9. Add-Ons and Custom Coverage

Many insurance providers offer optional coverage or Zusatzbausteine, including:

• Glass insurance (windows, mirrors, ceramic hobs)

• Bicycle theft outside the home

• Electronic device protection

• Natural disaster insurance (Elementarschadenversicherung)

• Valuable items (e.g., jewelry, antiques)

These add-ons slightly increase the premium but can be worthwhile for high-risk or high-value households.

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10. Tips for Choosing the Right Home Insurance

• Don’t underinsure: Make an accurate inventory of belongings.

• Update your policy after major purchases or renovations.

• Bundle policies to save (e.g., contents + liability + legal insurance).

• Ask about no-claims bonuses: Some insurers offer discounts for claim-free years.

• Review deductibles: A higher deductible can lower your premium but increases your out-of-pocket cost.

• Read the fine print: Know what is excluded and what conditions apply.

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Conclusion

Home insurance in Germany may not be mandatory by law, but it is a wise and often necessary investment for both renters and homeowners. It offers financial protection, legal security, and peace of mind in the face of unexpected events like theft, fire, or natural disasters. With a variety of policies, add-ons, and providers available, it’s important to assess your needs carefully and choose coverage that fits your home, lifestyle, and budget.

Whether you're a long-time resident or a newly arrived expat, understanding and securing the right home insurance in Germany can protect not just your home, but your entire quality of life.