Home insurance guide in Luxembourg: guarantees, choice and optimisation

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:

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

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.