Is home insurance mandatory in Luxembourg?
In Luxembourg, it is not legally compulsory to take out home insurance. However, if you are a homeowner, the bank will probably ask you to insure your property when you take out your mortgage. In the case of tenants, the situation may vary. The lease contract may require the tenant to take out home insurance. It is therefore essential to check the terms of your contract. Whatever your situation, it's still advisable to take out home insurance to cover the risks of any claims, otherwise you'll have to pay for any damage to your property or furnishings.
Home insurance covers personal belongings, real estate and civil liability. In the event of water or fire damage to a property, the insurance company will cover the cost of repairs..
It is therefore essential for the owner or the tenant to take out home insurance which will cover repairs to the damage suffered or caused.
In general, home insurance covers all damage or losses resulting from:
- a fire;
- climatic or natural events;
- damage or losses caused by water;
- breakage of glass, windows and mirrors;
- theft, attempted theft, or vandalism of the contents;
- the civil liability arising from the insured property ...
In addition to these major events, a home insurance policy enables you to extend the level of cover so that all your belongings are covered (mobile devices, etc.). The policy is flexible and can be tailored to suit individual requirements. It is crucial to assess the various risks carefully so that you have a policy tailored to your situation.
In principle, all the contents of your home are insured by your insurance company. To do this, you need to make sure that all your possessions have been insured for their fair value. Everything must be declared when you take out your policy, so that the level of compensation in the event of a claim can be estimated as accurately as possible.
An estimate must be made of the total goods value but also the value for certain types of goods, such as:
- valuables (paintings, rugs, sculpture ...);
- precious objects (jewellery, watches ...);
- digital equipment (mobile phones, laptops, tablets, watches and connected headsets, ...);
- a wine cellar;
- collections of all kinds (books, comics, etc.);
- the contents provided by the owner (kitchen equipment or furniture, etc.);
- a garden;
- solar panels...
Personal liability cover is not generally included in home insurance policies. Some insurance companies offer this cover as an additional option rather than as a standard inclusion. If your policy does not include this cover, it is advisable to add third-party liability insurance as additional cover for optimum protection.
This cover is essential, as it covers damage caused to third parties through negligence or carelessness. This could involve scenarios such as your pet or dog accidentally breaking a valuable object at a friend's house.
So it's crucial to check the terms and conditions of your policy to see whether it includes personal liability cover.
The average cost of home insurance in Luxembourg depends on a number of factors. The type of property (flat or house), your status (tenant or owner) and the surface area in m2 of your home all have an influence on the cost.
It is therefore difficult to give an average cost, as too many factors influence it.
Homeowner's insurance is aimed at owners who do not live in their property. This may apply to a property that is vacant, rented out to a third party or occupied free of charge. This cover is not compulsory in Luxembourg, but it is recommended as it protects property assets against various risks (fire, water damage, etc.). In some cases, this insurance may also include specific optional cover, such as the financial consequences of unpaid rent or damage to the property.
Article originally published in June 2021 and updated in August 2026.
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In the Grand Duchy, there is no law making home insurance compulsory, whether you are a tenant or a homeowner. In practice, however, there are two situations where you need to take out a policy: most landlords require it as part of the tenancy agreement, and banks systematically require it when granting mortgages. Without proof of insurance, you risk facing unpleasant surprises in the event of property damage for which you are liable.
Without comprehensive cover, you will have to pay all the costs yourself in the event of a claim: a fire, a storm or natural disasters can result in considerable costs. As a tenant, the risk is particularly high, as you remain liable for any damage caused to the property. A single uninsured claim could mean having to pay tens of thousands of euros out of your own pocket.
In the Grand Duchy, each party is responsible for their own insurance. The tenant takes out insurance to cover their personal belongings and their tenant’s liability, i.e. any damage they might cause to the property. The landlord, for their part, insures the building’s structure and their civil liability as a landlord. In the case of a co-ownership property, building liability insurance is generally provided for in the co-ownership regulations.
A home insurance policy in the Grand Duchy generally covers a range of basic risks: fire, water damage, glass breakage, theft and electrical damage. Cover for weather-related events or third-party liability is sometimes available as an optional extra, depending on the insurer. In Baloise’s ‘Home’ policy, these coverages are automatically included in the ‘Essentielle’ package.
To cancel your home insurance policy, you must notify your insurer of your intention to do so before the annual renewal date, giving the notice period specified in the general terms and conditions. In certain circumstances, early cancellation is permitted, particularly if you are moving abroad or selling your property. Please contact your Baloise agent directly to find out what steps you need to take in your specific situation and to avoid any unwanted gaps in cover.
Yes, personal liability cover is included in Baloise’s HOME policy. It protects you if you accidentally cause bodily injury or property damage to others in your day-to-day life, whether at a neighbour’s home, in everyday accidents or away from your home. This cover extends to all members of the household insured under the policy. Please note that if you own a dog, you must declare it to your insurer.
The amount of the premium depends on a number of factors specific to your home and your situation. The floor area, the type of property (flat or house), the value of your personal belongings and the cover you choose all play a key role. Your status (tenant or owner) also affects the premium, as does the property’s location. A personalised quote remains the best way to get a price tailored to your cover.