In Germany, insurance companies really do pay out claims quickly and without unnecessary bureaucracy, unlike in Ukraine. Although none of these three insurance policies is mandatory — unlike car liability or health insurance — they cover the most common risks of everyday life: liability to third parties, property, and legal costs.
Liability Insurance
This insurance covers any damage a person may cause to a third party. It is considered one of the most important types of insurance in Germany, especially for families with children: children often cause accidental damage to others’ property or health, and this insurance covers the compensation costs.
Home and Contents Insurance (Hausratversicherung)
The second type of insurance covers property in an apartment. It covers a wide range of situations: flooding (both of one’s own dwelling and neighbours’), robbery, and fire. In the event of such an incident, the insurance company pays compensation for damaged or lost property.
Legal Protection Insurance (Rechtsschutzversicherung)
The third type is so-called legal protection insurance. It is relevant if a person brings a lawsuit or becomes a defendant: legal proceedings in Germany are accompanied by significant costs for a lawyer’s work and court fees. With such insurance, the company covers the costs of your own lawyer, the opponent’s lawyer, and court expenses, so you don’t have to pay these amounts from your own pocket.
Other Insurance Types — for Those Planning to Stay Long-Term
There are also separate insurance policies for loss of earning capacity and private pension programmes. They are more relevant for those planning to stay in Germany for a long time: such programmes allow you to build up additional pension security for the future.
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