Is Contents Insurance Worth It in Germany? Costs vs Benefits Compared (2024)

You’ve locked your doors, checked the windows, and done everything to keep your home safe. But what if, despite your efforts, disaster strikes?

Imagine a fire in the flat above yours destroying everything you own, a burglar taking your electronics, or a burst pipe flooding your living room. 

Suddenly, replacing your furniture, electronics, and clothes could cost tens of thousands of euros.

What do you do?

One option is to pay for everything out of pocket, but most people will find this financially challenging.

That’s where household contents insurance comes in (aka contents insurance).

Also called household insurance, it protects you financially if your belongings are damaged or lost due to events like fire, theft, or natural disasters. Instead of covering the entire cost of replacement yourself, your insurance steps in.

Of course, insurance isn’t free. You’ll pay monthly or yearly, which leads to the big question:

Is contents insurance worth it?

On one hand, if nothing ever happens, you might feel like you’ve wasted money. On the other hand, if something unexpected happens, the financial relief can be priceless.

So, let’s break it down and find out.

What are the pros and cons of contents insurance?

Contents insurance can protect you from substantial financial losses, but it’s not perfect. Let’s look at the benefits and drawbacks to help you decide if it’s right for you.

Wondering “how contents insurance even works?” Read our guide to contents insurance in Germany.

How popular is household contents insurance in Germany?

It is one of the most widely used types of insurance in Germany. 

According to the German Insurance Association, 75.7% of households have insured their belongings.

But why is it so popular?

The answer becomes clear when you examine the damage claims paid out each year. 

Germans file claims for a wide range of incidents, and insurance companies cover significant amounts to help them recover. Here’s a breakdown of the major categories of claims:

Data sourced from HIC GmbH.

*Includes flooding, backwater, earthquakes, landslides, etc.

In total, insurance companies reimbursed over 1.1 billion euros for household damage claims in a single year.

What does this mean for you?

Let’s break it down. 

If we divide the total claims paid out by the number of insured households, the average policyholder is reimbursed €34.80 annually.*

This means if your contents insurance quote is less than €35 per year, the protection might be well worth it.

Germany’s high percentage of insured households reflects just how much people value this protection. 

And, when you see the numbers, it’s easy to understand why.

*Calculated as Total claim paid out by insurance companies/number of insured households.

What does contents insurance actually cost in Germany?

On average, it costs €9 to €15 per month, making it surprisingly affordable. 

When you compare that to Feather’s average claim payout of €654.50, it’s clear that this small cost offers significant value. Some payouts are much higher too—up to €4,500 in extreme cases.

Interestingly, many people file their first claim within three months of getting their policy. That shows how quickly unexpected problems can arise sooner than expected, making this coverage even more helpful.

What factors affect the cost of contents insurance?

While the average cost is low, your exact premium depends on a few factors:

1. Your zip code: Where you live matters. Some areas, like Berlin, have higher risks for burglary or other incidents, leading to higher premiums.
2. Value of your belongings: The more you want to insure, the more your policy will cost.
3. Optional add-ons: Your premium will increase if you need extra coverage, like protection for high-value items or specific risks.
4. Deductible: This is the amount you pay out of pocket before the insurance kicks in. A €0 deductible policy, like Feather’s, will cost more than one with a higher deductible.

Of these, the total sum insured (value of your belongings) has the most significant impact on cost, followed by your location.

To give you an idea of how premiums vary, here’s a table showing the cost to insure a 90-square-meter apartment with belongings valued at €60,000 in different German cities:

What does contents insurance pay for?

Contents insurance is there to protect you when life throws unexpected problems your way. 

But it’s important to know exactly what is—and isn’t—covered. This way, you can avoid surprises if you ever need to make a claim.

Here’s a breakdown of what most contents insurance policies cover, what some may include, and what’s generally excluded.

What most plans cover

The following risks are typically included in standard contents insurance policies:

• Burglaries: Coverage for stolen belongings after a break-in.
• Pipe bursts: Protection if a water pipe bursts and damages your property.
• Fire and explosion: Damage caused by fire or explosions is usually covered.
• Lightning strikes: If lightning damages your belongings, insurance can help.
• Storm and hail: Policies often cover damage from severe weather like storms and hail.

What some plans may cover

These features might be included in more comprehensive plans or as optional add-ons:

• Bicycle theft: Coverage for bikes stolen at home or in public (if locked).
• Natural hazards: Includes events like flooding, earthquakes, or landslides.
• Broken glass: Covers damage to windows, glass furniture, or mirrors.
• Moving expenses: If you can’t live in your apartment after an insured event (like a fire), your policy might help with temporary housing costs.
• Negligence: For example, if you accidentally leave a candle burning and cause a fire, some policies will still cover the damage.
• Student accommodation: Some plans allow you to cover belongings in a child’s dorm or rented room while they study away from home.

What few or no plans cover

Certain things are almost never covered by contents insurance:

• Unexplained loss or damage: If something is lost or broken without a clear cause, you likely won’t be reimbursed.
• Wear and tear: Normal aging or deterioration of items over time isn’t covered.
• Poor maintenance: Damage caused by neglect, like ignoring leaks, is excluded.
• Mechanical or electrical breakdown: Appliances or electronics failing due to internal issues are not included.
• Faulty workmanship or DIY errors: Mistakes from DIY projects or poor repairs aren’t covered.
• Pet damage: Damage caused by pets, such as chewed furniture or stained carpets, won’t be reimbursed.

Sometimes, the best household insurance policies can include some of the “may cover” or even “usually excluded” items. That’s why it’s important to read the fine print or speak to your insurance provider or an independent broker.

Alternatives to contents insurance

Contents insurance is a smart investment, but it’s not for everyone. If you’re not convinced, that’s okay. You still need a plan to replace your belongings if something unexpected happens.

Here are three alternatives to consider:

1. Self-insure your things

Instead of paying an insurance company, you can save money to cover future losses.

Here’s how it works: Insurance companies collect premiums and invest them to pay future claims. You can take a similar approach by setting aside savings to replace your belongings when needed.

• Start by estimating how much you’d need. Our guideline is €650 per square meter of living space to cover the cost of typical household items.
• Save a percentage of your income, such as 3% to 10% of your salary, and deposit it into a high-yield savings account or private pension plan.

While self-insuring gives you more control over your money, it can take time to build up enough savings and won’t protect you immediately.

2. Extended warranties

Extended warranties or protection plans can be a good option for expensive items like electronics, appliances, or furniture.

• These plans cover specific issues like mechanical failures or defects for a period, often beyond the manufacturer’s standard warranty.
• They don’t cover broader risks like theft, fire, or natural disasters, so they’re more limited than insurance.

Think of this as protecting individual high-value items rather than your entire home.

3. Invest in security

Instead of insuring your belongings, you could focus on preventing damage or theft altogether. 

For example:

• Install advanced home security systems such as alarm systems, surveillance cameras, or motion detectors.
• Consider adding fire safety equipment like smoke detectors and sprinkler systems to minimize fire-related risks.

While these tools don’t cover financial losses, they can significantly reduce the likelihood of something going wrong in the first place.

These alternatives can be helpful, but they’re not perfect substitutes for contents insurance. 

Saving money or using security measures can protect you in certain situations, but they won’t cover everything—especially in the case of major events like fire or flooding.

If you’re unsure, consider how much you’d need to spend to replace all your belongings simultaneously.

The verdict: is contents insurance worth it? 

Our opinion? Absolutely. Contents insurance is definitely worth the cost.

Unless you’re wealthy enough to easily replace your home furniture, kitchen appliances, and everything else, getting this policy is a no-brainer.

Why? 

Because the cost is minimal compared to the potential payout, spending €3 a month can prevent you from spending €5,000 or more on a single claim.

You’ll need a backup plan for unexpected events if that seems too much. This could mean setting aside monthly savings, improving your home’s security, or seeking support from family, friends, or the community.

Either way, it’s essential to prepare—because when the unexpected happens, having a safety net makes all the difference.

Contents insurance starting at €2.33 per month

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The Feather team regularly checks and updates this article. It was last revised on 20.12.2024

Théo Max Leimer

Author

Yassine Kacem

Editor