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What are the insurance rules in Germany?

After the rapid development that the world is witnessing, citizens need an asset in their hands that guarantees their life safety in all its aspects, and that is what the insurance sector does. In Germany, insurance is considered one of the most important and important matters, as its citizens have two types of insurance, the first one is compulsory insurance (such as health insurance, work-related insurance and vehicle insurance) and the second is optional (personal liability insurance, home contents insurance, occupational disability insurance). In addition, German insurance companies have a program called the "Comprehensive coverage program", which provides a guarantee against any type of property damage.

Types of property insurance in Germany

To begin with, let's explain the insurance system of insurance companies in Germany, and we will specifically mention those related to property.

Obligatory insurance

Is property insurance compulsory in Germany?

In fact, the answer is yes, but only part. Like vehicle insurance, since vehicle insurance in Germany is necessary and imposed on everyone who drives a car, either to the minimum required when purchasing it, or you can increase your vehicle insurance to include damage against theft or fire . Auto insurance is not limited to just that, but takes a different approach in terms of underwriting cost, as it depends on several factors, including:

  • The experience and age of the driver.
  • The size and type of vehicle to be insured.
  • The region (urban, rural).

Optional insurance

Take liability insurance as an example, as it saves large costs that are caused by unintentionally damaging other people's property, so insurance companies take over the resulting amounts and pay compensation. For example, in Germany they take the issue of security first, and if someone loses the keys to their apartment, they have to pay for the costs of replacing the locks of the entire building they live in, so insurance in such case is very necessary, which is why some of the rental contracts have come to place it as a clause of Its elements must be present.

Home insurance

There is also another type of optional insurance, which is home contents insurance or home insurance. The difference between them comes in terms of costs, as home contents insurance only includes specific things that are mentioned in the insurance contract, and of course it will be less expensive compared to insuring the whole house. One of the advantages of this type of insurance is that there is no difference between whether the owner of the house is an owner or a renter. But in the case of property, more and more extensive options are presented, such as the possibility of insuring the home in case of travel in the event of any accident or damage that may affect the home. Insurance in this case is considered external insurance that is included in the insurance contract.

Germany's largest property insurance company

Let us now shed light on the most prominent property insurance companies and mention some of their services.

Allianz Insurance

It depends on a program that includes insurance against fire, lightning or explosions and natural hazards such as earthquakes, storms and personal accidents.

Generali Deutschland Corporation

This company offers a full range of financial services, such as property and casualty insurance and construction facilities insurance.

Gothaer insurance

This company offers insurance in cases such as: car accidents, property damage, river transportation, theft and robbery, fire, storm and water damage.

Hamburger Freukesse Insurance Company

It is the first and oldest officially established fire insurance company in the world. They include property insurance against fire hazards and compensation for resulting losses.