Liability insurance in Germany (Haftpflichtversicherung) explained

Who needs it

Private liability insurance (Privathaftpflichtversicherung, often just Haftpflicht) is optional. There is no legal duty to have it. It is still one of the most recommended insurances in Germany. The Verbraucherzentrale (consumer advice centre) calls it a must for everyone.

The reason: under German civil law (§ 823 BGB) you must pay for damage you cause to others through fault, and there is no upper limit. A small accident can become very expensive:

• you knock over a friend's laptop,
• water from your washing machine damages the flat below,
• you cause a cyclist to fall and they are injured for months.

Personal injury is the real risk. Medical treatment, lost income and pensions can add up to millions.

Who may already be covered:

• Children and students are often covered by their parents' family policy while in school, university or first training. This usually ends around the end of the first training or at an age limit in the contract. Ask your parents' insurer.
• Spouses and registered partners can usually share one policy.

When

Take it out soon after you arrive, ideally before you move into a rented flat. It only covers damage that happens after the policy starts.

What it covers

A liability policy covers three kinds of damage you cause to other people by accident:

The insurer also checks whether a claim against you is justified. It defends you against unjustified claims.

Not covered:

• damage you cause on purpose,
• damage to your own things (that is household insurance),
• damage caused with a car or motorbike (separate, mandatory car insurance),
• damage caused by a dog or horse (needs separate pet owner's liability insurance),
• professional or business activities (freelancers need business liability cover).

What to look for

These are the features consumer advisers suggest checking:

• Coverage amount (Deckungssumme): the Verbraucherzentrale recommends at least €10 million as a flat sum for personal injury and property damage. Higher sums often cost little extra.
• Damage to rented property (Mietsachschäden): important for tenants, for example a cracked sink or damaged floor. Recommended: at least €500,000.
• Lost keys (Schlüsselverlust): losing a key to a building with a central locking system can mean replacing the whole system. Check that private keys and, if you need it, work keys are covered.
• Uninsured third parties (Forderungsausfalldeckung): pays you if someone damages your property and cannot pay and has no insurance.
• Favours (Gefälligkeitsschäden): damage when helping friends, for example while helping them move.
• Young children (deliktunfähige Kinder): children under 7 are usually not legally liable. A policy can still pay for damage they cause, which avoids arguments with friends and neighbours.
• Deductible (Selbstbeteiligung): a deductible lowers the premium only a little. Consumer advisers generally advise against one.
• Who is covered: single, couple or family. Unmarried partners should be named in the contract.

How to do it

1. Decide who needs cover: just you, you and a partner, or a family.
2. Compare policies against the checklist above. Anfänger's liability insurance comparison explains the options.
3. Answer the application questions honestly, for example about previous claims.
4. Keep the policy document (Versicherungsschein). Some landlords ask for proof.

What happens afterwards

If something happens, report the damage to your insurer promptly and describe what happened honestly. Don't pay the other person out of your own pocket first. The insurer checks whether you are liable and how much is owed.

Common problems

Is liability insurance mandatory in Germany?

No, private liability insurance is optional. Car owners must have separate car liability insurance. Dog owners may need dog liability insurance, depending on the state and the dog.

Does my landlord require liability insurance?

Some landlords ask for it in the rental contract or during viewings. Even if they don't, damage to the flat you rent is a common claim.

I already have liability insurance from home. Does it work in Germany?

Maybe not. Many foreign policies only cover your home country or short trips. Ask your insurer in writing whether you are covered while living in Germany.

Does it cover my things if they are stolen?

No. Liability insurance only covers damage you cause to others. Your own belongings are covered by household insurance.