Mandatory and optional Insurances

There are a bunch of insurances which are offered for property owners. 

homeowner insurance (Wohngebäudeversicherung) is obligatory required from banks for your mortgage. If you are buying an apartment in an apartment building this insurance is included in the auxiliary costs. 

Normally this insurance does not cover natural hazards (Elementarschäden). Such an additional insurance policy should be added if your property is close to hazard zones like rivers or on a hill. 

Both above insurances cover the building itself. To protect your inventory, you should have a household content insurance (Hausratversicherung). This insurance is worth considering if you have expensive furniture, electronics or valuables in your house. 

private liability insurance (Privathaftpflichtversicherung) is recommended to cover any damage occurring to others from your house (e.g. roof tiles hitting a person). 

To financially protect you in case the main earner is incapacitated or dies, there are three options to make sure that debts are paid: (a) term life insurance (Risikolebensversicherung) which pays in case of death, (b) payment protection insurance (Restschuldversicherung) which pays in case of incapacity or death and (c) occupational disability insurance (Berufsunfähigkeitsversicherung) which covers incapacity.

There are other insurance available – like legal expense insurance or glass and repair insurance – which are expensive but not really necessary to most of property owners. 

You should look into the above and consult an independent insurance broker for further advice.

We can help you finding the required insurances.  

* As per 28/10/2019; assuming 150.000 EUR loan amount, 60% mortgaging, redemption of 2%p.a.; source: https://www.finanzpartner.de/immobilienfinanzierung/zinsen/

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