Home / Insurance broker / Which insurance do I need?
Insurance for Home owner: what you really need
Buildings insurance is not compulsory by law, but every mortgage lender requires it. Add natural hazard cover: heavy rain floods houses far from any river. In a flat, the owners' association insures the building, so check whether natural hazards are included there. While a mortgage runs, term life should cover the outstanding debt.
You can skip
- Bank payment protection insurance
Usually far more expensive than term life with the same sum, and often sold as part of the loan.
- Glass insurance
Unless you have large glass fronts or a conservatory, premiums over the years exceed the likely loss.
The policies one by one
Buildings insurance
Wohngebäudeversicherung covers the structure of your house against fire, burst pipes, storm and hail, normally at full rebuild cost. It is not required by law, but every mortgage lender …
Natural hazard cover
In Germany, standard buildings and contents policies exclude flooding, heavy rain, sewer backflow, earthquake and landslide. You need a separate add-on called Elementarschadenversicherung. …
Personal liability
In Germany, anyone who negligently causes damage to someone else pays for it in full, with no upper limit. Private liability insurance (Privathaftpflicht) pays justified claims and fights …
Term life insurance
A Risikolebensversicherung pays a fixed sum if the insured person dies during the term. It has no savings element and is inexpensive. For expats, it often matters more than for Germans, …
Contents insurance
In Germany, the insurance for your belongings is called Hausratversicherung. It pays new-for-old after fire, burst pipes, burglary, storm and hail. Unlike renters insurance in the US, it …
Solar panel insurance
Rooftop solar panels in Germany are often covered by your buildings insurance, but only against fire, storm, hail and escaping water. A dedicated Photovoltaikversicherung adds short …
Self-build insurance
If you commission a house in Germany yourself, you become the Bauherr: the person legally responsible for the building site. There is no single self-build policy, but four separate covers …
Legal expenses insurance
Legal expenses insurance pays for lawyers, court fees and experts when you need to enforce your rights or defend yourself. In Germany it is widespread and sold in modules: private life, …
Why this order
The rule: existential risks first, expensive ones second, comfort last
First insure what could ruin you financially: unlimited liability towards others under the German Civil Code, the loss of your income through illness, and your house if you own one. Then losses that hurt but will not ruin you, such as replacing the contents of a flat. Comfort cover such as dental top-ups or travel extras comes last.
Pay small losses yourself. Every premium carries administration costs, so insuring a phone or glasses costs more over the years than it pays out. Compulsory in Germany are health insurance with long-term care cover for everyone, motor liability for every registered vehicle and, in several federal states, dog liability.