Private liability insurance

The one insurance that every German knows you should have. Private liability insurance. Why is that? German law: The BGB says that you are liable for damage dealt to others (even accidental) with your entire wealth. Including any future earnings! And as you can get great coverage for less than 4 euros a month, there isn’t really any excuse. Get checked here for what it would cost for you. Find out what to watch out for here:

Most important

It only covers accidental damage. So immediately report all damage to the insurance company before acknowledging guilt or paying any part of the damage. In this case, you usually lose all your insurance cover. The liability policy not only pays for your claims, but also defends you against unjustified claims — if necessary in court.

Insurance sum

Because the personal liability insurance covers bodily injury, the sum insured should amount to at least three million euros. Some companies now offer coverage of up to thirty million euros. The highest sum we know of claimed ever in Germany over all types of insurance was 7.2 million euros for a car accident — so it’s really really unlikely you’ll ever need more than 10 million coverage. Additionally, we’d recommend raising the deductible to lower the cost in many cases.

Cost

Personal liability insurance is relatively cheap. There are very good rates for families starting at around 50 euros per year, and as an individual you can get great coverage from 40 euros per year. Above that you’re mainly paying for an even higher coverage sum, but up to here we think it’s worth it to pay a few euros more a year for good liability protection.

Cover for credit default

We recommend this cover. It means that your own insurance pays even in the event that you yourself are harmed and the person responsible can not pay the damage — for example, because he’s a tourist or has no personal liability insurance.

Gradual — “Allmählichkeitsschäden”

This refers to damage dealt over a prolonged period of time, such as gradually escaping gases or liquids. This should be included in most decent policies.

Internet damage

This doesn’t cover torrents or other illegal behaviour. But it does cover for example: Your computer has been contaminated by a virus that spreads from your computer. If you computer is identified as the source — you have to pay for the damage caused by the virus. This coverage is optional, but worth watching out for.

To find out more about what to watch out for in insurance, get a check-up with personal recommendation here.

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