Water damage refers to any harm caused by the action of water in a property. This can include pipe leaks, seepage through the roof, overflows from sanitary appliances, or burst pipes. These incidents can lead to significant material damage, affecting both the structure of the building and its contents.

Damp, mould, leaks: not always an insurable incident

It is essential to distinguish water damage from a simple damp issue. For example, mould on a wall may be due to poor ventilation rather than a leak. In such cases, home insurance generally will not cover the repair work, as it does not qualify as a sudden and accidental incident.

What qualifies as insurable water damage?

For water damage to be eligible for compensation, it must result from an unforeseen and accidental event. Insurance generally covers damage caused by:

• leaks or burst pipes,
• overflowing bathroom fittings,
• water seepage through the roof or walls,
• sewer overflows.​

If the leak originates from a private installation, such as a water inlet or a plumbing fixture located within the property, responsibility generally lies with the occupant. If the occupant is a tenant, they will usually be responsible for covering the repairs, unless the leak is due to a construction defect or normal wear and tear, in which case the landlord may be held liable.

Leak originating from communal areas or the roof

In a co-owned building, communal areas, such as the roof or rising mains, fall under the responsibility of the co-owners’ association. In the event of a water leak originating from these structures, the co-ownership insurance will cover the repairs.

Damage caused to a neighbouring property: shared responsibilities

When water damage affects a neighbour’s property, it is essential to identify the source of the leak. If the occupant is found to be responsible, their civil liability insurance will cover the damage caused to the neighbour. Otherwise, it is the neighbour’s insurance that will provide compensation, potentially seeking reimbursement from the identified liable party.

In Luxembourg, taking out home insurance is not legally required, whether for tenants or property owners. However, it is strongly recommended and, in many cases, contractually required. In practice:

• An owner-occupier will take out home insurance to cover the building, contents, civil liability, or loss of rent in the event of a claim.
• A landlord may also insure the rented property, particularly for the structure and damage to fixed elements.
• A tenant is generally required by their lease to take out insurance covering tenant liability and any damage they might cause to the property or to third parties.

Home insurance can therefore be taken out by either party, but it is essential that each is covered to the extent of their responsibility: the owner for the building, and the tenant for any damage they might cause. In the event of a claim, being uninsured can lead to significant costs and complex legal disputes.

Tenant’s responsibility: what Luxembourg law says

Under Luxembourg law, tenants are legally obliged to behave responsibly and prudently in line with general legal principles. This means they must:

• maintain the fixtures and fittings in good working order,

• avoid any negligence in the use of the property,
• promptly report any issues to the owner (leaks, damage, abnormal damp, etc.).

When water damage occurs due to misuse, lack of maintenance, or negligence, the tenant is held responsible. This can include, for example, a leak caused by a poorly connected washing machine or an unattended overflow.

It is therefore essential for any tenant to carefully inspect the equipment when moving in, use it properly, and above all, take out suitable home insurance that covers both tenant liability and personal belongings.

Landlord’s responsibility: maintenance obligations and duty of care

The owner, whether occupying the property or renting it out, is responsible for the structure of the property as well as all so-called "fixed" installations, such as built-in piping, roofs, walls, or central heating systems.

They must ensure that the property is:

• compliant with health and safety standards,
• regularly maintained, particularly to prevent any risk of damage (e.g. unsealed roofing, outdated piping),
• promptly repaired in the event of a problem reported by the tenant or detected by the owner themselves.

A landlord cannot be absolved of responsibility if damage occurs due to lack of maintenance or a construction defect. It is therefore highly advisable for landlords to take out specific home insurance that covers not only material damage but also their civil liability as property owners.

A tenant’s home insurance generally covers:

• damage caused to the rented property,
• civil liability in the event of damage caused to third parties,
• damage to personal belongings in the event of a claim.

Owner’s insurance: additional protections

The owner can take out home insurance covering:

• damage to the building,
• civil liability as the property owner,
• loss of rental income in the event the property is uninhabitable following a claim.

When moving in and out of the property, we recommend documenting the condition of the fixtures and fittings, walls, floors, and ceilings. A thorough inventory will help prevent disputes in the event of a claim.

Regularly maintain plumbing installations and the roof

Regular maintenance of plumbing installations, piping, and the roof helps prevent leaks and water seepage. It is advisable to:

• check plumbing seals and the connections of household appliances (washing machine, dishwasher, etc.),
• inspect the condition of gutters and water drainage systems,
• have the roof and windows checked for any seepage.

These simple actions can help you avoid costly material damage and reduce the risk of disputes with the insurer or any affected third parties.

Take out home insurance tailored to your situation

Whether you are a tenant or a property owner, it is essential to choose home insurance aligned with your status. Make sure your policy covers:

• water damage and any consequential losses (loss of use, temporary rehousing, etc.),
• civil liability (tenant or owner),
• claims from neighbours and third parties.

A handy tip: speak with an agent who is familiar with the Luxembourg market and can tailor your cover to local circumstances.

Even a minor water leak can lead to costly repairs and strained relationships with neighbours or your landlord. It's always better to be safe than sorry.
Whether tenant or owner, everyone has clearly defined responsibilities, and it's essential to be aware of them. Poorly maintained fixtures, an ignored leak, or unsuitable insurance can quickly complicate matters.

Take the time to check what your home insurance policy covers. If necessary, review it with your agent.