Yes, people with dementia need liability insurance (Privathaftpflicht). In early stages they are fully liable. Once a pathological condition rules out free will, they are not responsible under Section 827 BGB, and the injured party often gets nothing. A policy with a clause for persons not legally capable of fault still pays. Private liability costs about EUR 40 to 120 a year.
What private liability costs for people with dementia and their partners in Germany.
Example
Typical range
Private liability for one person, at least EUR 10 million cover
about EUR 40 to 120 a year
Private liability for a family or couple
about EUR 60 to 180 a year
Excess per claim in private liability
EUR 0 to 250
Guide values from published market overviews, as of 2026.
A clause for persons incapable of fault can raise the premium slightly;
guide value from our quoting practice.
Worked example
Father with advanced dementia leaves the tap running in a block of flats
The father lives alone; his daughter is his legal guardian. Water runs into the flat below, damage around EUR 6,000.
Father's liability
excluded under Section 827 BGB
Daughter's liability
only if she breached a duty to supervise
Liability policy without clause
rejects the claim
Liability policy with clause
pays up to the sub-limit
With the clause, the neighbour gets paid without a dispute. Without it, the neighbour has to rely on their own contents and buildings insurance.
When people with dementia are liable themselves
Anyone who negligently harms someone else must pay compensation (Section 823 BGB). That also applies with early dementia. But under Section 827 BGB, a person acting in a pathological state of mental disturbance that rules out free will is not responsible.
With advanced dementia this is often the case. Fluctuating conditions are hard: someone acting in a lucid moment is liable. After damage, this is often disputed, sometimes with expert reports.
What the injured party gets and what relatives risk
If the person with dementia is not liable, the injured party can still claim under Section 829 BGB if fairness requires it and the person keeps enough to live on. This is the exception, not the rule.
Relatives are liable under Section 832 BGB if they have a legal or contractual duty to supervise and failed in it. There is no automatic duty between spouses. A court-appointed legal guardian (rechtlicher Betreuer) responsible for personal care can, however, have such a duty.
The clause for persons incapable of fault
Without liability, a private liability policy pays nothing, because it only covers legal claims. Many policies therefore include a clause that also pays for damage caused by adults who are not capable of fault, usually up to a sub-limit. Ask for it specifically when insuring a person with dementia.
The clause mainly protects relationships with neighbours, other care home residents or friends: they are not left with the loss, and the dispute about lucid moments falls away.
Family policy, own policy or care home
Spouses are covered in each other's private liability. A parent with dementia living with their children, however, is not covered under the model terms and needs an own policy. Claims between relatives in the same household are excluded there anyway.
After moving into a care home, the policy should continue, for example for a fellow resident's broken hearing aid. People with dementia only do not need their own liability insurance if an existing family policy already includes them.
Step by step
Check whether the person is already covered through a spouse.
Look in the policy terms for damage caused by persons incapable of fault.
Answer all health questions truthfully in a new application.
Compare the clause's sub-limit with likely damage.
Keep the policy running after a move into a care home.
Checklist
Own or co-insured private liability for the person with dementia
Clause for persons incapable of fault with a sufficient sub-limit
Rental damage included, also for a care home room
Liability cover of the legal guardian checked
Policy documents easy for the guardian to find
Common mistakes
Cancelling liability insurance after the diagnosis because the person is no longer liable
Answering health questions wrongly
Assuming a parent in your household is covered by your family policy
Letting the policy lapse on moving into a care home
Questions and answers
Frequently asked
Are people with dementia liable for damage?
In early stages, yes.
Once free will is ruled out by illness, they are not responsible under Section 827 BGB.
Are relatives liable for people with dementia?
Only if they have a duty to supervise and breached it,
for example as a legal guardian responsible for personal care.
Do I have to tell the insurer about the dementia?
In a new application you must answer the insurer's questions truthfully.
For an existing policy, it depends on the policy terms.
What is a dementia clause?
A rule in the policy under which liability insurance also pays for damage caused by adults
incapable of fault, even though there is no legal claim.
Is liability insurance still needed in a care home?
Yes.
A person with dementia can still damage other people's belongings or trigger a fire brigade
