“Do I really need it? I am careful.” Personal liability insurance (Privathaftpflicht) is voluntary – but if I could recommend only one policy, it would be this one. The reason is a simple legal rule: whoever causes damage to someone else has to pay for it. With no upper limit.
Why liability is unlimited
- Anyone who injures another person or damages their property, intentionally or negligently, must compensate them (§ 823 BGB – German Civil Code). A moment of carelessness is enough.
- Personal injury is the real risk: treatment, care, loss of earnings and compensation can add up to millions.
- A claim confirmed by a court judgment only expires after 30 years (§ 197 BGB).
What it covers
| Type of loss | Everyday example |
|---|---|
| Personal injury | You hit a pedestrian with your bike. |
| Property damage | Red wine on your host’s sofa; a flowerpot falls on a car. |
| Financial loss | The injured person cannot work – the lost income is part of the claim. |
The insurer also checks whether you are liable at all and fights off unjustified claims.
How much cover?
The German consumer advice centres (Verbraucherzentrale) recommend at least 10 million euros as a flat sum; other consumer advocates mention 15 million, and 50 million often costs only a few euros more. Older contracts sometimes have just one or two million. For damage to rented property: at least 500,000 euros.
Add-ons that matter
- Default cover (Forderungsausfalldeckung): someone damages you, has no insurance and no money – your own policy pays instead.
- Lost keys: replacement of a whole locking system.
- Favours: help a friend move and drop the TV – you are often not legally liable at all; good tariffs pay anyway.
- Children under 7 are not legally responsible, in road traffic not until 10 (§ 828 BGB). The neighbour has no claim – unless your policy covers children without legal capacity.
Family tariffs include a partner in the same household and children until the end of their first education; after that they need their own policy.
What is NOT included
- Intent (§ 103 VVG); gross negligence is covered.
- Motor vehicles: compulsory motor liability insurance.
- Dogs and horses: owners are liable even without fault (§ 833 BGB) – separate pet owner liability.
- Work and business: professional or business liability.
- Houses: the owner-occupied home is usually included; landlords need property owner liability.
How to proceed
- Check your policy for the sum insured, the people covered and the add-ons above.
- Compare it with your life today: partner, child, house, pet, child finished education?
- Old contract below 10 million? Look at current terms.
- Arrange new cover first, then cancel – see notice periods.
General information, not legal, tax or investment advice. Sources: German Civil Code (§§ 197, 823, 828, 833 BGB), German Insurance Contract Act (§ 103 VVG), consumer advice centres (Verbraucherzentrale, 10/2026) – as of October 2026. Want to know whether your policy still fits your life? Get in touch.
