Supplementary Insurance in Germany: Liability and Household Cover

This guide is for internationals who have recently moved to Germany and want to understand which insurances the law requires and which ones are voluntary but common. After reading it, you will be able to tell the compulsory social insurance schemes apart from private cover such as personal liability and household insurance, and you will know what to check before signing a contract.

• Compulsory insurance: the five social schemes
• Personal liability insurance
• Household insurance for your belongings
• Cars and motorbikes: where cover becomes compulsory
• Before you sign: contracts and advice
• FAQ

Compulsory insurance: the five social schemes

According to Handbook Germany, Germany has five compulsory social insurance schemes: medical, long-term care, pension, accident and unemployment insurance. These form the base layer of protection. Everything else in this guide sits on top of them and is optional, with one important exception for people who own and drive a car or motorbike.

The German word Pflicht (obligation) can be misleading here. It appears in the name Haftpflichtversicherung (personal liability insurance), yet that policy is voluntary. Handbook Germany describes most optional insurances as protection against financial risks and notes that whether any of them is useful depends on a person’s life situation.

Unlike address registration, schools or childcare, which are organised by the federal states and local offices, these supplementary insurances are private contracts with an insurance company. The source describes what is covered, and to what extent, as depending on the contract itself. It does not say anything about insurance in connection with residence permits. Anyone with a specific residence question can contact the Ausländerbehörde (foreigners’ authority) or a migration advice service.

Personal liability insurance

Handbook Germany calls liability insurance one of the most important voluntary insurances. It pays when the policyholder damages something that belongs to another person or injures someone. The page gives a simple example: scratching someone’s car while riding a bike. If a person causes an accident and the injured people demand payment for their medical costs and compensation for their pain, the bill can be very high. Without liability cover, the page warns, this can make life very difficult.

The policy can also provide legal protection when someone demands payment for damage the policyholder did not actually cause. This side of the cover is easy to overlook, but it matters in disputes where the facts are unclear.

Families get broader protection than many newcomers expect. Small pets and children are included, so if a child breaks another child’s toy, the insurance can pay for it. Larger animals such as big dogs and horses require a separate insurance. The page does not define where the line between a small and a large animal falls, so the individual contract decides.

Policyholders choose the insured sum themselves, and the contribution is then calculated from that amount. The Verbraucherzentrale (consumer advice centre) recommends a sum of at least 5 million euros. Handbook Germany puts the cost of a 5 million euro policy at about 50 to 80 euros per year. The Verbraucherzentrale website has a video explaining how liability insurance works and offers personal counselling, and comparison portals such as Check24 list different policies side by side.

Household insurance for your belongings

Household insurance, known as Hausratversicherung, covers loss or damage that happens in your home. If something is stolen or destroyed in a fire, this is the policy that pays. According to Handbook Germany, it covers almost everything kept at home or in the garage, including electrical appliances, work equipment, clothing and furniture. Many household policies also apply on holiday, for example when luggage is stolen during a trip.

The page sets out what policyholders must do when damage occurs:

1. Report the damage to the insurance company immediately.
2. Inform the police as well if the damage resulted from a crime.
3. Give the insurer a list of all items that were affected.
4. Leave the damage as it is until the insurance company has paid, rather than repairing or clearing it first.

Negligence changes the picture. Handbook Germany explains that if someone was very careless, for example by leaving the door open, they are personally responsible for a burglary that follows and receive no refund from the insurer.

New mobile phones are often sold together with phone insurance. The Verbraucherzentrale does not recommend these policies because they are often too expensive, and in some cases, such as burglary, household insurance already covers the damage. Its website has tips on what to look for in a phone policy.

Cars and motorbikes: where cover becomes compulsory

Vehicle owners face a different rule. Anyone who owns a car or motorbike and wants to drive it must first apply for a permit, and motor vehicle liability insurance is required to obtain it. This insurance covers damage caused by the vehicle, for example in accidents. Because those costs can be very high, Handbook Germany recommends cover of up to 100 million euros.

Protection for the vehicle itself is optional. Teilkaskoversicherung (partially comprehensive insurance) covers damage such as fire or theft. Vollkaskoversicherung (fully comprehensive insurance) also covers damage the driver is responsible for, as well as damage caused intentionally. The page describes this type of cover as expensive and not always worth it.

A separate Insassenunfallversicherung (personal accident insurance for vehicle occupants) is not needed, according to the page, because such accidents are usually covered by standard motor vehicle liability insurance.

Before you sign: contracts and advice

Handbook Germany stresses that the terms and conditions of private insurance contracts deserve close attention. Some providers attract customers with reasonable prices and then limit their services, and some insurances are unnecessary or cost too much. Once a contract is signed, the policyholder is obliged to pay the fees, often over an extended period.

The page also points out that it is never precisely clear in advance which cases are covered and to what extent. That depends on the contract. The source does not state notice periods or cancellation rules, so those must be checked in each individual contract. For anyone who does not understand the details, Handbook Germany recommends getting help from someone who does, and the Verbraucherzentrale offers insurance counselling.

FAQ

Is personal liability insurance compulsory in Germany?

No. Despite the word Pflicht in its German name, Haftpflichtversicherung is optional, although Handbook Germany calls it one of the most important voluntary insurances. The compulsory schemes are the five social insurances: medical, long-term care, pension, accident and unemployment insurance. Motor vehicle liability insurance is a separate case, because it is required to obtain the permit to drive your own car or motorbike.

How much does personal liability insurance cost?

The cost depends on the insured sum you choose. The Verbraucherzentrale recommends at least 5 million euros, and Handbook Germany puts a policy of that size at about 50 to 80 euros per year. The final price is set by the insurer and the contract.

Does liability insurance cover my children and pets?

According to Handbook Germany, small pets and children are included in personal liability insurance, so damage such as a child breaking another child’s toy can be paid for. Larger animals such as big dogs and horses need a separate insurance. The source does not define which animals count as large, so the individual contract decides.

What happens with household insurance after a burglary?

Household insurance covers stolen items. The damage must be reported to the insurer immediately, the police must be informed because a crime is involved, and the insurer needs a list of all affected items. The damage should be left as it is until the insurer has paid. If the burglary followed serious negligence, such as leaving the door open, the insurer pays nothing.

Sources: handbookgermany.de

Last verified: 24 October 2026 against the pages linked above. Rules and fees change; the responsible authority always has the final word.

This is general information, not legal or immigration advice. For your own situation, ask the foreigners’ authority (Ausländerbehörde) of your city, a recognised migration advice service or a lawyer (Rechtsanwalt).