InsuoraHow German home insurance works
Germany divides home insurance into two completely separate products — unlike France (MRH bundle) or the UK (buildings and contents bundle). Understanding the split is essential before buying:
- Hausratversicherung (contents insurance)
- Covers everything movable inside your home: furniture, appliances, electronics, clothing, sports equipment, bicycles. Standard perils include fire, burglary, water damage from burst pipes, and storm/hail. Optional add-ons: bicycle theft outside the home, natural hazards, glass breakage. Renters and owners can both buy this.
- Wohngebäudeversicherung (building insurance)
- Covers the structure: walls, roof, foundation, fixed plumbing and wiring, built-in kitchen, bathroom fixtures. Standard perils: fire, burst pipes, storm, hail. Optional: natural hazards. For homeowners only — renters do not need (and cannot buy) building insurance for a property they do not own.
A homeowner who has only building insurance is not protected against theft of their television. A renter who has only contents insurance is not liable for the building — that is the landlord's responsibility. Both products are voluntary in Germany, though building insurance is effectively required by every mortgage lender.
Natural hazard cover (Elementarschadenversicherung)
The Elementarschadenversicherung is an optional add-on to both Hausrat and Wohngebäude policies. It covers damage from events that standard policies exclude: flooding (surface water flooding from heavy rain — Starkregen — and river overflow), landslides, earthquakes, ground subsidence, snow pressure, and drain backflow (Rückstau).
Only around 50% of German residential buildings carry natural hazard cover. Consumer advocates and the German government strongly recommend it — floods have caused tens of billions in uninsured losses in recent decades, with victims left relying on state disaster relief. The 2021 Ahr Valley flood (over 180 deaths, 1,800+ destroyed homes in one night) demonstrated that severe flooding can occur in areas not classified as flood zones.
Coverage availability depends on the ZÜRS flood risk zone of your property's address. Zones 1–3 can normally obtain Elementarschadenversicherung; Zone 4 (highest risk, typically riverside properties) is difficult and expensive to insure. Check your zone at the GDV Naturgefahrenportal.
Condo apartments: WEG building insurance vs. your personal policy
In a condo building, the Wohnungseigentümergemeinschaft (WEG) takes out collective building insurance covering the entire structure and common areas — funded through your monthly service charge (Hausgeld). This covers the outer walls, roof, stairwell, and shared systems.
It does not cover your Sonderausstattung — the improvements you made to your unit above the standard shell: new engineered hardwood floors, a renovated bathroom with designer fittings, a custom kitchen. You need to insure these yourself, typically through a Hausratversicherung that explicitly includes owner improvements (Sondereigentum). Check the WEG policy to understand exactly what's covered before deciding your own coverage level.
Privathaftpflicht: essential but separate
German consumer organisations consistently rank Privathaftpflichtversicherung (personal liability insurance) as the single most important insurance product for individuals. It covers damages you accidentally cause to other people or their property — knocking over a neighbour's bicycle, spilling wine on someone's laptop, your child breaking a shop window while playing. Without it, you are personally liable for these costs without limit.
A family policy costs approximately €50–100 per year and covers all household members. It is a separate product, not included in Hausrat or Wohngebäude insurance — make sure you have it.
How German building insurance is priced
Wohngebäudeversicherung premiums in Germany are calculated based on the Gebäudeversicherungswert 1914 — an inflation-indexed rebuilding value that tracks construction cost trends via the gleitende Neuwertfaktor. Premiums automatically adjust annually to reflect changes in construction costs, preventing underinsurance. Key factors affecting your premium:
- Federal state (Bundesland): storm and hail risk varies significantly. Baden-Württemberg, Bavaria, and NRW tend to be higher-premium states.
- ZÜRS flood zone: properties in zones 3–4 pay significantly more for Elementarschadenversicherung, or may be declined.
- Construction type: timber-frame homes pay more due to higher fire risk. Solid masonry is the reference type.
- Year built: older properties have more ageing plumbing and wiring, increasing water damage risk.
- Deductible (Selbstbeteiligung): choosing a higher deductible (€150–500) reduces premiums meaningfully.
Frequently asked questions
- Is this calculator free?
- Yes — completely free, no account needed. Everything runs in your browser and nothing you enter is saved.
- What is the GDV rule of thumb for Hausrat sum insured?
- The GDV (German Insurance Association) recommends at minimum €650 per square metre of living area as a starting point. A 75 m² apartment would therefore be insured for at least €48,750. Many insurers now recommend €700–800/m² given rising household goods values. If you have high-value electronics, art, jewellery, or musical instruments beyond standard limits, declare them separately or increase the sum insured accordingly.
- Can I switch home insurance mid-contract in Germany?
- For Hausratversicherung: usually terminable annually with one month's notice before the contract anniversary. After a claim, both you and the insurer have a special right of termination (Sonderkündigungsrecht). When moving, you have the right to cancel with one month's notice. For Wohngebäude: same rules, but if you sell the property, the insurance passes to the new owner who can then cancel within one month.
- Does Hausrat cover home office equipment?
- Standard policies typically include home office equipment up to a sub-limit (often €1,500–€3,000). If you are working from home with a high-value company-issued laptop or professional camera equipment, check your policy's limit for professional equipment (Arbeitsmittel/Berufsbedarf). Business-critical equipment may require a separate commercial policy or a specific rider.