Whoever causes damage in Germany is liable with their entire wealth, without limit and for life. Personal liability insurance covers that for under €60 a year. Which sum insured, which clauses and who is co-insured.
In short
- Sum insured at least €10 million flat for personal injury, property and financial loss; €50 million costs hardly more.
- Bad debt cover, key loss, favour damages, children not liable in law, damage to rented property belong in.
- Families: partner and children in education are co-insured, also adults as long as they are in education.
- Costs €40 to €90 a year; compare every three years.
Why it is existential
Under Section 823 of the German Civil Code you are liable for damage you negligently cause to others, without upper limit. A cyclist who hits a pedestrian who then needs lifelong care owes millions. A glass of red wine on the landlord’s carpet costs €2,000. Personal liability insurance (Privathaftpflicht) pays justified claims and fends off unjustified ones, in court too. It is the only insurance every person needs regardless of income and wealth.
The sum insured
At least €10 million flat for personal injury, property damage and financial loss. Tariffs with €50 million often cost only a few euros more. Old contracts with €3 million should be replaced. For financial loss, such as bad advice that costs money, some tariffs are capped at €100,000; tariffs covering everything flat are better.
The clauses
Bad debt cover: pays when someone without liability insurance damages you and cannot pay. Key loss for other people’s keys including locking systems. Favour damages when helping with a move. Children under seven not liable in law, for whom parents are not legally liable but whose damage neighbours still want replaced. Damage to rented property in the rented flat, hotel rooms and holiday homes. Volunteering, minding other people’s dogs, small drones, photovoltaics on the roof, internet use. Worldwide cover unlimited within Europe, at least five years outside.
Who is co-insured
Spouses and partners in the same household, minor children, adult children at school, in training or a first degree, even if they have moved out. After their studies they need their own contract; many forget that, and the first party without cover can be expensive. Singles pay €40 to €60 a year, families €60 to €90.
What is not insured
Damage to your own property, intent, damage with motor vehicles (that is motor liability), dogs and horses (separate animal owner liability, mandatory in some states), professional activity (professional liability), builder risks above a construction sum, hunting, motorised water sports. And damage family members cause each other, except for personal injury in good tariffs.
Switching
Old contracts are often worse and dearer than new ones. Compare every three years, cancel with three months’ notice to the expiry date or extraordinarily after a premium increase. The new contract should follow seamlessly; a gap of one day is enough for an uncovered claim.
Try it yourself
Insurance CheckLife situation, job, family, possessions: which insurance you need, which is optional and which you can skip.Frequently asked questions
Do I need liability insurance as a student?
Yes, but in a first degree you are covered via your parents. After a bachelor’s with job entry or from a second degree you are not.
Does it pay for gross negligence?
Yes, only not for intent. Whoever causes damage while drunk is still covered in good tariffs.
Does it cover damage to borrowed items?
Only with a clause for borrowed and rented items, which is standard in modern tariffs. Old contracts exclude it.
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