Privathaftpflicht, BU & Co: Insurance Overview in Germany
Three insurance types are considered priorities in Germany: Privathaftpflicht (personal liability, ~€30-80/year in 2026), 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: nearly 9 in 10 people have it [1].
Covers damage you accidentally cause to other people or their property. In Germany, the principle of unlimited personal liability applies — you are liable with all your assets, with no upper limit (Section 823 BGB) [11].
| 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 [5]; Finanztip screens tariffs from €50 million (2026) [7] |
| Mietsachschäden | Included |
| Schlüsselverlust | Included |
| Gefälligkeitsschäden | Included |
| Cost | ~€30-80/year (2026); good single tariffs from €20-30, Stiftung Warentest top tariffs from €48 [7] [10] |
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]. Mental illness is the most common cause, regardless of profession type. State Erwerbsminderungsrente (reduced earning capacity pension) covers on average 35% of last gross income (full pension averaged €1,059 per month in 2023) 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; example: 25-year-old office worker, €1,500 BU pension — about €40-70/month (2026) [8] |
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 (€77,400 gross per year in 2026) 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 (2026); depends on region, floor area, and coverage amount [9]
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]
- €30-80 — price range for Haftpflicht per year (2026) [7]
- 3-5% of gross — guideline for BU premiums
- 35% — average state Erwerbsminderungsrente as percentage of last gross [3]
FAQ
This is not legal or financial advice.
Is Privathaftpflicht really worth it if I've never had a claim?
Think in expected value, not past experience. The premium is about €30-80 per year (2026) [7], while liability under German law is unlimited: you are liable for damage you cause with all your assets and future income (Section 823 BGB) [11]. A serious Personenschaden (personal injury) — treatment, rehabilitation, lost-earnings compensation — easily exceeds a million euros. For a small fixed sum, the insurance shifts a rare but existential risk onto the insurer. Having had no claims in the past does not reduce that risk.
Does my Haftpflicht cover my family and kids?
A family tariff usually covers your partner, minor children, and adult children during their first education. One nuance with small children: under age 7 (under 10 in road traffic), a child is not legally liable for damage (Section 828 BGB) [11] — the insurer only pays the injured party if the tariff includes a "deliktunfähige Kinder" clause (children below the age of tort liability). The reverse case: young adults are often covered through their parents until about age 25 and the end of their first education — check the specific policy.
Which insurances do agents push that this framework says to skip?
The criterion is the type of risk, not the product name: insure rare existential risks, self-fund frequent small losses. Handyversicherung (phone insurance), Glasbruchversicherung (glass breakage), Reisegepäckversicherung (luggage) cover small, predictable amounts with many exclusions; an emergency fund handles them without premiums. Compare the scale: the maximum loss on such policies is hundreds of euros — with Haftpflicht or BU, it is your financial existence.
I just arrived in Germany — in which order do I get insurance?
Order by how existential the risk is. Krankenversicherung from day one: it is mandatory by law. Privathaftpflicht in the first weeks: cheap, while the risk is unlimited. Kfz-Haftpflicht (motor liability) is mandatory only if you own a car. Hausrat once you own valuable belongings. BU once your income is stable: in the Boat phase (first 1-2 years), the emergency fund comes first, but the earlier you sign up for BU, the lower your lifetime premium.
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). So sind Deutsche versichert (Sonderauswertung EVS 2023). GDV, 2025. https://www.gdv.de/gdv/id-49418
- Deutsche Aktuarvereinigung (DAV). Jeder Vierte wird berufsunfähig. Aktuar Aktuell Nr. 44, 2018. https://aktuar.de/de/wissen/magazine/detail/jeder-vierte-wird-berufsunfaehig/
- Deutsche Rentenversicherung / BMAS. Erwerbsminderungsrente: Leistungshöhe und Voraussetzungen. DRV Bund, 2025. https://www.deutsche-rentenversicherung.de/DRV/DE/Rente/Allgemeine-Informationen/Erwerbsminderungsrente/erwerbsminderungsrente_node.html
- Bundesregierung. Beitragsbemessungsgrenzen und Versicherungspflichtgrenze 2026. 2025. https://www.bundesregierung.de/breg-de/aktuelles/beitragsgemessungsgrenzen-2386514
- 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
- Finanztip. Private Haftpflichtversicherungen im Vergleich. 2026. https://www.finanztip.de/haftpflichtversicherung/privathaftpflicht/
- Finanztip. Berufsunfähigkeitsversicherung: Was kostet eine BU? 2026. https://www.finanztip.de/berufsunfaehigkeitsversicherung/bu-kosten/
- Finanztip. Hausratversicherung Kosten: So kannst Du sparen. 2026. https://www.finanztip.de/hausratversicherung/hausratversicherung-kosten/
- Stiftung Warentest. Haftpflichtversicherung im Vergleich. test.de, 2025. https://www.test.de/Vergleich-Haftpflichtversicherung-4775777-0/
- Bürgerliches Gesetzbuch (BGB) Sections 823, 828. Liability for damages and responsibility of minors. https://www.gesetze-im-internet.de/bgb/__823.html