Privathaftpflichtversicherung (personal liability insurance) is not legally required in Germany, yet around 85% of households have it. Once you understand why, you will want it too.
Why it matters: § 823 BGB
Under § 823 of the German Civil Code you are liable for damage you cause to others without limit. That word is literal:
- Liability extends to your entire assets,
- if those are insufficient, to your future income, garnished for years,
- and in severe cases the obligation can run for up to 30 years.
Example: you knock over a pedestrian while cycling and they are permanently unable to work. Medical costs, loss of earnings and lifelong care can reach millions of euros. Without insurance, that is your personal debt. This is why a policy costing €60 a year is considered essential rather than optional.
What it costs
| Who | Annual cost (2026) |
|---|---|
| Single person | €40 – 120 |
| Family (partner and children included) | €60 – 180 |
Family policies cover your partner and children on one contract. Students are usually covered by their parents’ policy until they finish their first degree, typically to age 25 — check before buying your own.
What to look for in a policy
The cheapest option is usually the wrong one. Make sure these are included:
- Deckungssumme (cover limit): at least €10 million. Policies with €50 million often cost only a few euros more — take them.
- Mietsachschäden: damage to your rented flat (flooring, sanitary ware, doors). Essential for tenants.
- Schlüsselverlust (lost keys): German buildings use central locking systems (Schließanlage). Losing one key can mean replacing the entire system — several thousand euros. Do not skip this.
- Forderungsausfalldeckung: pays you if someone damages you and has no insurance themselves.
- Gefälligkeitsschäden: damage caused while helping a friend move or repair something. Missing from many standard policies.
- Auslandsschutz: cover while abroad — look for at least 1 year if you travel home for long periods.
What is not covered
- Intentional damage — no insurer covers this.
- Damage caused while driving — that requires KFZ-Haftpflicht.
- Damage in the course of your profession (Berufshaftpflicht is separate).
- Damage to your own property.
- Dog and horse owners need separate Tierhalterhaftpflicht — personal liability does not cover your dog.
How to apply
Entirely online, and you do not need German citizenship. You need your registered address (Anmeldung), a German IBAN and your date of birth. Contracts usually run for one year and renew automatically; notice periods are typically 3 months.