Why you need liability insurance in Germany

Why is it important to have liability insurance in Germany?

Liability insurance (“Haftpflichtversicherung”) is also commonly known as personal or private liability insurance (“Privathaftpflichtversicherung”).

By German law, if you cause any damage to others or their property, you are entirely liable with all your private assets. While there are cases where the costs are low enough for you to pay out of your own pocket (e.g., breaking a vase), if the damages include medical costs or the replacement of expensive property, the amount could easily reach and surpass five digits.

With liability insurance, the insurance company will cover the costs and also defend you from unjustified claims, in the case that you are wrongly accused. Aside from protecting you financially, having liability insurance gives a peace of mind.

What does German liability insurance cover?

You should make sure your liability insurance offers you sufficient protection. Ensure that the insurance company covers the following at a minimum:

• The minimum amount of coverage should be at least 10 million euros. A coverage of 50 million euros is better and typically only costs a few euros more
• The insurance should cover injuries, property damage and financial losses
• Insurance for the loss of your keys. This is particularly important if you are living in student housing. The replacement of locks and keys can become very expensive
• Personal liability insurance in Germany should also offer coverage for rental damages. This is in the case of damages caused to your rented apartment.

What does the Fintiba liability insurance cover?

Here is an overview of the damages covered by the Fintiba liability insurance:

Insured amount for person, object and financial damages:	€ 5,000,000.00 max. per event
Damages to rental property:	€ 1,000,000.00 max. per event
Key loss:	€ 100,000.00 max. per event
Deductible	€ 100.00 per event
Protection against unjustified claims:	Yes
Valid for short term stays in other countries	Yes (*not in home country)

What does liability insurance not cover?

Typically, personal liability insurance does not cover self-inflicted injuries or damages. If you damage your TV yourself or break your phone, you will have to pay for it yourself.

Similarly, if you cause any damage to someone covered under your policy (e.g., your partner or child), your liability insurance is not going to pay for this.

While the loss of keys is covered by liability insurance, calling a locksmith after locking yourself out will not be paid for by the insurance company.

Liability insurance in Germany also does cover damages or accidents cause by your car. It is necessary to have car insurance for such incidents.

If your dog causes any damage to your neighbour’s garden or chews up your couch, your personal liability insurance cover these costs. You will need a dedicated dog liability insurance.

Summary

In conclusion, private liability insurance in Germany is a crucial safeguard for all individuals. Having one protects you from finding yourself in a financially vulnerable position after causing expensive unintentional damages to a third party.

When selecting a liability insurance cover, keep in mind the minimum coverage to keep you protected. Additionally, remember there are incidents that personal liability insurance cannot protect you from.