Arenja & Raj FinanzThe reason this matters in Germany
Under § 823 of the German civil code you are liable for harm you cause to another person. That liability is not capped. It runs against everything you own now and everything you will earn for the rest of your working life.
There is no statutory ceiling, no automatic write-off, and it applies to a moment of inattention exactly as it applies to anything deliberate. People arriving from countries where liability is limited, or where such claims are rare, consistently underestimate this.
The everyday cases are small — a phone knocked off a table, a bicycle collision, water from your bathroom reaching the flat below, a lost set of building keys where the entire block has to be rekeyed. The case that justifies the policy is the rare one: serious injury to another person, where claims for lifetime care and lost earnings run into the millions.
What it costs
| Who is covered | Typical cost per year in 2026 |
|---|---|
| Single person | €40 – €120 |
| Couple | €50 – €150 |
| Family, including children | €60 – €180 |
There is no other policy in Germany where so little money buys so much protection. That is the whole argument, and it is why we put it second on the list after health cover.
What to check before you sign
Price is not where the differences are. These four points are:
| Feature | Why it matters |
|---|---|
| Sum insured | Take at least €10 million. The step up from €5 million usually costs a few euros a year |
| Lost keys | Rekeying a whole building runs into thousands, and not every policy includes it |
| Damage to a rented flat | Essential if you rent — many basic policies exclude it |
| Who counts as family | Partners, children in education and children abroad are treated differently by different insurers |
Comparison sites rank on price, which is precisely why so many people end up with a policy missing one of the above. Getting the wording right is the part worth having someone do for you — and it is the part we do routinely.
The rental market angle
German landlords increasingly ask to see a liability policy before handing over a flat, and in a market as tight as Hamburg's that alone can be the difference between getting the apartment and not.
If you are flat-hunting, this is worth arranging before the viewings rather than after.
Getting it right in one call
Private liability is a cheap policy, which is exactly why people buy it carelessly — and then discover the gap at the worst possible moment. Sorting it properly takes about fifteen minutes.
We compare across the market, we read the exclusions, and we advise in English. If you are arranging several things at once — a new flat, a new job, a family joining you — it makes sense to do the whole set in one conversation.
Salary calculator
Run your own numbers
Liability claims are settled against your income as well as your savings. Here is what your net salary actually looks like — the figure a claim would be measured against:
Want this checked against your own situation?
Fifteen minutes, free, and genuinely non-committal. We work with people building a life in Germany, and we speak English, German and Hindi.
Book a free callPick a time that suits youCommon questions
Is private liability insurance compulsory in Germany?
No. It is voluntary, which is why so many internationals do not have it. It is nonetheless the first policy most advisers here recommend, because German law makes your liability for harm you cause unlimited — it reaches your current assets and your future income with no ceiling.
How much does Privathaftpflicht cost?
Between €40 and €120 a year for a single person and €60 to €180 for a family, for cover of €10 million or more. That is roughly five euros a month for the broadest protection available in the German market.
How much cover should I take?
At least €10 million. Many policies offer €20 or €50 million for only a few euros more, and the sum insured is the one thing that cannot be renegotiated after an incident. Where a claim for lifetime care is involved, the difference between €5 million and €20 million is not theoretical.
Does it cover damage to my rented flat?
It should, but not every policy includes it as standard — and for tenants it is one of the most likely claims there is. Scratched parquet, a cracked basin, a damaged worktop. Check the wording specifically, or let us check it for you.
Does my liability insurance cover my family?
Family policies normally cover a spouse or registered partner and children while they are in education, but the definitions vary considerably between insurers — unmarried partners, adult children still studying, and children living abroad are all treated differently. Worth reading carefully before you assume.
Do I need it if I am only in Germany for two years?
Yes. The exposure does not shrink because your stay is short, and at around five euros a month there is no meaningful saving in going without. It is also one of the easiest policies to cancel when you leave.