Privathaftpflicht, BU & Co: Insurance Overview in Germany
Three insurance types are considered priorities in Germany: Privathaftpflicht (personal liability, 40–80€/year), Berufsunfähigkeitsversicherung (disability protection, 3–5% of gross), and Krankenversicherung (health insurance, mandatory by law). The rest — Hausrat (home contents), Rechtsschutz (legal protection), travel insurance — depend on your life situation and assets.
How Insurance Is Typically Categorized
From bottom to top: from basic protection to additional coverage.
△ Additional
╱ ╲ (Reisegepäck, Glasbruch)
╱ ╲
╱ ╲
╱ Situational ╲
╱ (Hausrat, Rechtsschutz) ╲
╱ ╲
╱ Commonly Recommended ╲
╱ (Haftpflicht, BU, Kranken) ╲
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
Commonly Recommended Insurance
Privathaftpflichtversicherung
Privathaftpflicht (personal liability insurance) is the most common voluntary insurance in Germany: over 85% of households have it [1].
Covers damage you accidentally cause to other people or their property. In Germany, the principle of unlimited personal liability applies.
| What It Covers | Example |
|---|---|
| Personal injuries | You hit someone with your bike → treatment costs, compensation |
| Property damage | You drop a friend's laptop |
| Financial losses | You accidentally delete important data |
| Rental property damage | You damage your rented apartment |
What to look for:
| Criterion | Typical Recommendation |
|---|---|
| Coverage amount | From €10 million |
| Mietsachschäden | Included |
| Schlüsselverlust | Included |
| Gefälligkeitsschäden | Included |
| Cost | €40-80/year |
Berufsunfähigkeitsversicherung (BU)
Berufsunfähigkeitsversicherung (BU, disability insurance) pays a pension if you cannot work in your profession.
Approximately one in four workers in Germany becomes unable to work before reaching retirement age [2]. State Erwerbsminderungsrente (reduced earning capacity pension) covers on average 35% of last gross income and is only paid when completely unable to work more than 3 hours per day in any job [3].
| State Erwerbsminderungsrente | BU |
|---|---|
| ~35% of last gross | Insure 60-80% of net |
| Only when under 3 hours work capacity | From occupational disability |
| For ANY job | For YOUR profession |
What to look for:
| Criterion | Typical Recommendation |
|---|---|
| BU pension | 60-80% of net income |
| Term | Until age 67 |
| No abstract referral | Recommended |
| Nachversicherungsgarantie | Recommended |
| Cost | 3-5% of gross income |
BU premiums are calculated based on age and health at the time of application. Younger and healthier = lower premiums.
Krankenversicherung
Krankenversicherung (health insurance) is mandatory by law in Germany — no exceptions.
Either GKV (gesetzliche Krankenversicherung, public) or PKV (private Krankenversicherung, private). Employees earning below the mandatory insurance threshold (€73,800 gross per year in 2025) are automatically insured in GKV [4].
Level 2: Situational Insurance
Hausratversicherung
You need it if: Valuable belongings, burglary risk, expensive electronics
| Claim Type | Covered |
|---|---|
| Burglary | ✅ |
| Fire, lightning | ✅ |
| Water damage | ✅ |
| Storm, hail | ✅ |
| Own carelessness | ❌ |
Typical cost: €50-150/year
Auslandsreise-Krankenversicherung
You need it if: You travel outside the EU
| Situation | GKV Coverage | Auslandsreise-KV |
|---|---|---|
| EU with EHIC | ✅ | Additionally useful |
| USA, Asia, etc. | ❌ | MANDATORY |
| Repatriation | ❌ | ✅ |
Typical cost: €10-20/year — almost always worth it
Rechtsschutzversicherung
You need it if: Frequent conflicts possible (rental law, employment law)
| Area | Typical Cases |
|---|---|
| Mietrecht | Disputes with landlord, deposit |
| Arbeitsrecht | Termination, reference |
| Verkehrsrecht | Accidents, fines |
| Privatrecht | Purchase contracts |
Typical cost: €150-300/year
Insurance with Debatable Value
Arguments Against
| Insurance | Criticism | Alternative |
|---|---|---|
| Handyversicherung | High price, many exclusions | Save for replacement |
| Sterbegeldversicherung | Low returns | ETF savings plan |
| Glasbruchversicherung | Rare cases, low costs | Pay yourself |
| Reisegepäckversicherung | Often covered by Hausrat | Check your coverage |
| Krankenhaustagegeld | May duplicate sick pay | Check if needed |
| Restschuldversicherung | High cost, many exclusions | Consider BU instead |
For smaller risks, some prefer to build an emergency fund instead of insurance — saving on premiums and maintaining more control.
Things to Consider
| Common Approach | Alternative Approach |
|---|---|
| Postpone BU until later | Earlier signup = lower premiums |
| Get each insurance separately | Bundle deals may be cheaper |
| Low coverage amounts | Haftpflicht: typically €10 million recommended |
| Insure small things | Higher deductible = lower premium |
| Rarely review contracts | Annual review of terms |
Checklist by Life Situation
Student/Apprentice (under 25, insured through parents)
- Privathaftpflicht (often through parents, check!)
- Auslandsreise-KV for semester abroad
Career Starter
- Own Privathaftpflicht
- BU as early as possible
- Auslandsreise-KV
First Own Apartment
- Privathaftpflicht (with Mietsachschäden)
- BU
- Hausrat (if valuable belongings)
Family with Children
- Privathaftpflicht (family in one contract)
- BU for both earners
- Risikolebensversicherung (for main breadwinner)
- Hausrat
Key Numbers
- 1 in 4 — share of workers who become unable to work before retirement [2]
- €10 million — minimum recommended Haftpflicht coverage [5]
- €40-80 — price range for Haftpflicht per year
- 3-5% of gross — guideline for BU premiums
- 35% — average state Erwerbsminderungsrente as percentage of last gross [3]
Common Questions
Am I still insured through my parents? Haftpflicht: Often until age 25 and during first education. Health insurance: Until 25 (Familienversicherung GKV). Terms depend on the specific policy — check with your insurer.
Is BU relevant for office work? Mental illness is one of the most common causes of occupational disability, regardless of profession type.
Can I deduct insurance from taxes? Partially. Haftpflicht and BU count as special expenses (Sonderausgaben, deductible expenses), but there are limits that are often already exhausted by Kranken- and Rentenversicherung (health and pension insurance) contributions [6].
Sources
- Gesamtverband der Deutschen Versicherungswirtschaft (GDV). Privathaftpflichtversicherung: Verbreitung und Bedeutung. GDV, 2024. https://www.gdv.de/de/themen/versicherungen/privathaftpflicht
- Deutsche Rentenversicherung. Erwerbsminderungsrenten: Statistik und Ursachen. DRV Bund, 2024. https://www.deutsche-rentenversicherung.de/DRV/DE/Rente/Allgemeine-Informationen/Erwerbsminderungsrente/erwerbsminderungsrente_node.html
- Bundesministerium für Arbeit und Soziales (BMAS). Erwerbsminderungsrente: Leistungshöhe und Voraussetzungen. BMAS, 2024. https://www.bmas.de/DE/Soziales/Rente-und-Altersvorsorge/Erwerbsminderungsrente/erwerbsminderungsrente.html
- Bundesministerium für Gesundheit. Versicherungspflichtgrenze 2025. BMG, 2024. https://www.bundesgesundheitsministerium.de/themen/krankenversicherung/grundprinzipien/versicherungspflicht.html
- Bund der Versicherten (BdV). Privathaftpflicht: Empfohlene Deckungssummen. BdV, 2024. https://www.bundderversicherten.de/Verbrauchertipps/Privathaftpflicht
- Bundesministerium der Finanzen. Sonderausgaben: Versicherungsbeiträge steuerlich absetzen. BMF, 2024. https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Weitere_Steuerthemen/Abgabenordnung/sonderausgaben.html