Home insurance guide in Luxembourg: guarantees, choice and optimisation
Home insurance in Luxembourg is not legally mandatory, but it is required in practice by the majority of landlords and by banks for a mortgage. A standard contract covers water damage, fire, theft, storm and civil liability. Optional guarantees extend coverage to floods, solar panels, multimedia equipment, or valuables. Tenants, co-tenants and landlords have distinct needs: the tenant must at least cover their rental civil liability and movable property, while the owner-occupant must also insure the structure of the building. To optimize your coverage, it is recommended to re-evaluate your contract every two to three years and to adapt the guarantees to the evolution of your profile (work, new equipment, relocation).
↓ Is home insurance mandatory in Luxembourg?
↓ Essential coverages: what a home insurance policy covers
↓ Optional guarantees: personalize coverage
↓ Frequent exclusions: What insurance doesn't cover
↓ Tenant, roommate, owner: what obligations?
↓ How to optimize your coverage?
↓ FAQ - Home owner's insurance in Luxembourg
Home insurance is not legally mandatory in Luxembourg. However, in practice, two situations indirectly impose it:
- The lease agreement: the majority of owners require a certificate of insurance before handing over the keys.
- Mortgage loan: Luxembourg banks generally make granting a loan contingent on the subscription of insurance covering the building.
In the absence of insurance, you are personally responsible for any damage to third parties or the property — including any unintentional loss such as water damage or fire.
A home insurance policy brings together several fundamental guarantees; here are the main ones and what they cover.
Water damage
This guarantee covers damage caused by leaks, overflows, or water leaks in your home. It covers repairs to your property and the property of neighbours affected by the incident.
Fire and related events
This guarantee covers damage caused by fire, smoke and lightning, whether it affects the building structure or your movable property.
Theft and vandalism
This guarantee covers loss or damage related to a break-in, burglary, or acts of vandalism. It usually includes replacing locks and repairing damage caused during the intrusion.
Storm, hail, snow
This guarantee covers property damage caused by severe weather phenomena: strong winds, hail, snow accumulation on roofs. In particular, it protects windows, roofs, gutters and outdoor equipment.
Broken glass
Covers damage to glass surfaces: bay windows, windows, verandas, glass doors. Recommended for modern apartments with large glass surfaces, especially on the Kirchberg plateau or in new residences.
Civil Liability (CL)
Home liability covers bodily injury or property damage caused to third parties, in your home or in your private life. It occurs, for example, if your child accidentally breaks a neighbour's window, if a water leak at your home damages the apartment below, or if your dog bites a passerby.
Please note that this guarantee is not always included in your basic guarantee. However, in the essential formula of our Baloise home contract, this guarantee is automatically included.
Flooding
The floods of July 2021 caused nearly 120 million euros of insured damage in Luxembourg (source ACA). You can also consult the map of risk areas available on the Water Management Administration portal.
This guarantee is generally offered as an option, but in the Baloise home contract, it is included in the essential formula.
You can customize your coverage by adding specific guarantees to cover your specific needs.
Home legal protection
Covers legal and procedural costs in the event of a dispute related to your unit: conflict with a neighbour, dispute with a craftsman or a landlord. Useful in a country with strong real estate growth where work and renovations are regularly the source of disputes.
Solar panels and renewable energy
This option covers your solar panels against weather damage, electrical surges or acts of vandalism. Check whether your standard contract automatically includes this equipment.
Multimedia equipment
This option protects your mobile (smartphones, laptops, tablets) and fixed devices from accidental breakage or theft, whether you're at home or on the go.
Valuables or jewellery
This option helps protect your most valuable possessions, such as luxury jewellery or works of art, by adjusting compensation caps to their actual value. It guarantees specific coverage against theft or damage, often beyond the limits provided for ordinary furniture.
Garden / Pool
This option helps protect your outdoor fixtures, such as garden furniture, pool equipment, and garden equipment, from weather or theft. It complements your contract to guarantee the value of your outdoor installations.
As in any insurance contract, some situations are not covered, for example:
|
Exclusion |
Concrete example |
|
Lack of maintenance or gross negligence |
Roof not repaired for several years that collapses in the rain: the loss can be refused if the dilapidation was known. |
|
Undeclared high-value items |
Jewellery, works of art, musical instruments — their coverage requires a specific declaration and an amendment to the contract. |
|
Normal wear and tear |
A floor that degrades over time or a boiler at the end of its life is not covered. |
|
Undeclared business use |
If you work in your home without having reported it to the insurer, some claims may be excluded. |
|
Exceptional natural phenomena (excluding underwritten guarantee) |
Some extreme weather events are only covered if the flood or natural disaster guarantee has been explicitly taken out. |
As a tenant, you must cover at least:
- Rental civil liability: it protects the owner if you are responsible for a claim (water damage, fire). Without this guarantee, you are required to reimburse repairs from your pocket.
- Your movable property: furniture, clothing, electronic equipment — they are not covered by the owner's insurance.
Your landlord may legally ask you for a certificate of insurance before giving you the keys. A comprehensive plan also includes fire, theft and 24-hour assistance.
Roommate
Since August 2024, roommates in Luxembourg have been governed by law: a single lease must be signed between the owner and all roommates. In practice, this is not necessarily the case. For co-renter's insurance, the simplest and most protective solution is to take out a single contract mentioning all the occupants. It is also possible that a person is insured for the common areas and that each roommate individually insures his room in the house or apartment.
In the event of a loss caused by one of the roommates, responsibility is shared. A group contract avoids disputes between roommates and simplifies the management of compensation.
Owner occupant
As a homeowner, in addition to covering your furniture contents, you must insure the structure of your home or apartment (walls, roof, floors, fixed installations). The replacement value option is highly recommended: it allows the replacement of your damaged property without deduction of obsolescence, provided that you submit the replacement invoices within the deadlines provided for in the contract.
Non-occupant owner
If you rent your property or leave it vacant, non-occupying homeowner's insurance is essential. It covers:
- Claims occurring during vacant periods of the property
- Damage not covered by the tenant's insurance
- Cases where the tenant terminates his contract without informing you
|
Status |
Priority |
Good practices |
|
Owner |
Building value + new value option |
Re-evaluate the insured capital every 2 to 3 years |
|
Renter |
Rental CL + furniture contents |
Check compensation limits |
|
Flood zone |
Explicit flooding guarantee |
Check that it is mentioned in the special conditions |
Regularly re-evaluate your contract
Needs evolve: purchase of new equipment, renovation work, birth, relocation. Check your policy at least every two years to make sure that the insured capital still corresponds to reality. You can always do a review with your agent.
No, home insurance is not legally compulsory in Luxembourg. However, your tenancy agreement or bank may require certain types of cover.
In practice, tenants are often required to take out home insurance as part of a rental agreement. If you are looking to rent a flat in Luxembourg City or elsewhere in the country, check the insurance requirements set out in your tenancy agreement.
For homeowners with a mortgage, the bank may also require appropriate cover to protect the financed property.
Yes, Baloise is the only insurer in Luxembourg to offer a 100% online application process for home insurance. With Home insurance, you can get an insurance quote in just five minutes and complete the entire application online, whether you are a tenant or the owner of a flat or house.
It is difficult to provide a single average home insurance price in Luxembourg. The premium depends on factors such as the type and size of the property, its location, the value of the contents to be insured and the cover selected.
Flat insurance in Luxembourg and house insurance in Luxembourg may therefore have different premiums depending on the property and the level of protection required.
To find out how much your cover would cost, you can request a home insurance quote online or use an online home insurance calculator.
Personal civil liability insurance may cover accidental property damage or bodily injury caused to third parties in the course of your private life.
Depending on the cover and exclusions set out in the policy, this may include water damage affecting a neighbour’s home, an accident caused by a member of your family or damage caused by your pets.
For tenants, this protection may form part of tenants’ insurance or a more comprehensive rental insurance policy that also covers the home and personal belongings.
Current value is the value of an item at the time of a claim, taking depreciation into account.
Replacement value is based on the cost of replacing the damaged item with an equivalent new item, subject to the terms and limits of the home insurance policy.
This distinction is important when choosing home insurance for a house or flat, as it may affect the amount of compensation paid following a claim.
The premium for home insurance itself is generally not tax-deductible in Luxembourg.
However, certain insurance premiums may receive specific tax treatment if they meet the conditions laid down in Luxembourg legislation. This may include certain personal liability insurance premiums or insurance linked to a mortgage.
As the applicable treatment depends on the policy and the taxpayer’s circumstances, it is advisable to check the tax rules that apply to your individual situation.
You can cancel your policy 30 days before its anniversary date by registered letter. Other circumstances may allow you to cancel your policy early, including moving abroad, selling the property or a change in premiums by the insurer.
Before submitting your request, check the general and specific terms and conditions of your home insurance in Luxembourg to confirm the notice period, procedure and any supporting documents required.
Yes. Since August 2024, Luxembourg law has regulated shared tenancies under a single tenancy agreement. For insurance purposes, it is important to clearly identify the responsibilities of the different occupants and the belongings to be insured.
Depending on the tenancy agreement and insurance policy, rental insurance in Luxembourg may cover several tenants. In this case, check that everyone concerned is correctly declared and that the cover reflects the actual living arrangements.
If you are looking for a flat to rent in Luxembourg, check the insurance requirements in your tenancy agreement before moving in.
When looking to rent in Luxembourg, choose insurance that reflects your status as a tenant, the property you occupy and the value of your belongings.
Rental insurance may include cover for your liability, personal belongings and various risks associated with the property, depending on the policy selected.
Whether you are looking to rent a flat in Luxembourg, find a studio to rent in Luxembourg City or move to another municipality, check both the cover required by the landlord and the protection you actually need.