Personal liability insurance in Germany (Privathaftpflicht): is it compulsory?
By Ali Alawihee · Updated 5 November 2026
A moment of carelessness can be expensive – for example if you injure someone while cycling. Personal liability insurance (Privathaftpflicht) pays when you cause damage to others. Here are the basics.
Is it compulsory?
No. German law does not require it – unlike motor insurance, where third-party cover (Kfz-Haftpflicht) is mandatory.
Still, it matters. Under section 823 of the German Civil Code (BGB), anyone who intentionally or negligently harms another person must pay for the damage, with no upper limit – the consumer advice centres (Verbraucherzentrale) stress that liability is unlimited. Personal injury can be especially costly.
The insurer pays justified claims up to the agreed sum insured (Deckungssumme) and defends you against unjustified ones.
Everyday examples
Each of these may be covered, depending on your policy:
- Water damage: your washing machine floods the flat below.
- Cycling accident: you knock over and injure a pedestrian.
- Rented flat: you scratch the parquet while moving furniture.
- Lost key: the locking system of your building or office must be replaced.
Who can be covered?
The policy terms define exactly who is insured. Common types:
- Single: the policyholder only.
- Couples: spouses, registered partners and often unmarried partners living together, who should then be named in the policy.
- Family: children too – adult children usually while in their first uninterrupted training or degree.
Children and liability
Under section 828 BGB, children under 7 are not liable for damage they cause. In accidents involving motor vehicles, trains or trams – mainly in moving traffic – this extends to under 10, unless the child acted intentionally. For 7- to 17-year-olds it otherwise depends on whether they could understand their responsibility.
If a child is not liable (deliktunfähig) and the parents did not breach their duty of supervision, the injured party usually has no claim. Some policies still pay for such damage, often up to a set limit.
Sum insured and key terms
The sum insured is the most the insurer pays per claim; anything above it you pay yourself. The Verbraucherzentrale advises at least 10 million euros combined for personal injury, property damage and financial loss. Stiftung Warentest's minimum requirements also use 10 million euros for injury and property damage (as of October 2026).
- Mietsachschäden: damage to rented rooms (floors, doors, walls), not normal wear and tear. The Verbraucherzentrale names at least 500,000 euros.
- Schlüsselverlust: the cost of losing keys that are not yours, such as those of a rented flat or your employer. Often separately capped.
- Forderungsausfalldeckung: your insurer pays if someone uninsured who cannot pay causes you damage – usually once a court has confirmed your claim.
- Selbstbeteiligung (excess): the share of a claim you pay yourself. According to the Verbraucherzentrale, it usually saves little on the premium.
What is usually not covered
Typical exclusions:
- Intentional damage (many policies do include gross negligence).
- Your own belongings.
- Cars, motorbikes and e-scooters – these need Kfz-Haftpflicht.
- Your own dog – this needs dog liability cover (Hundehaftpflicht), compulsory in some federal states.
- Professional or self-employed work, which needs separate cover.
Cancelling and switching
Many policies run for a year and renew automatically. Three months' notice before the end of the term is common, but your contract is what counts. A claim or a premium increase may give you a special right to cancel (Sonderkündigungsrecht).
When switching, avoid a gap in cover. This article is general information, not individual advice.