Home owner's insurance in Luxembourg: what you really need t
In Luxembourg, home insurance for a home owner is not legally mandatory, but it is highly recommended and often required by the bank in case of a home loan. It generally covers the main risks (fire, water damage, theft, broken glass) as well as civil liability. Coverage varies depending on whether you are the owner-occupant or lessor, and must be appropriate for your property, especially in co-owned properties, for which two types of insurance coexist.
↓ Is home insurance mandatory for a home owner in Luxembourg?
↓ What does home insurance cover when you're a home owner?
↓ Owner occupant, landlord: what's the difference?
↓ Home and condominium insurance in Luxembourg: how does it work?
↓ How much does home insurance cost for a home owner in Luxembourg?
↓ Which home insurance should you choose when you are a home owner?
Legally, no: there is, to date, no general legal obligation requiring owner-occupants to take out home insurance in the Grand Duchy of Luxembourg.
However, in practice, it is often essential, even imposed:
- Existing mortgage: Your bank will almost always require home insurance. This is a condition of the mortgage, not a legal obligation in the strict sense, but a must.
- Co-ownership: The co-ownership rules may require insurance to cover your civil liability and damage to common areas. In the case of a semi-detached house, it is also highly recommended.
- Financial protection: A house or apartment is often the most valuable asset of a household. A major loss can have serious financial consequences and civil liability becomes essential in the event of harm to others.
In summary: legally optional but, in reality, unavoidable for the vast majority of owners in Luxembourg.
The guarantees of a home owner's insurance in Luxembourg generally cover damage to the building and the contents (be careful to appraise it correctly). Civil liability is not systematically included, the Home insurance of Baloise, includes liability starting from the "Essentiel" plan.
The essential guarantees
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Fire |
Damage caused by fire, smoke, explosion |
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Water damage |
Leaks, broken pipes, seepage |
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Flooding and climate events |
Flood and weather damage. Please note that these guarantees are not automatically included under your insurance policy. Home de Baloise insurance includes it in the Essential plan. |
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Theft and vandalism |
Burglary, attempted theft, damage |
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Broken glass |
Windows, bay windows, verandas |
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Civil liability |
Damage caused to a third party (infiltration into a neighbour’s property) |
Useful optional guarantees for a home owner
Depending on your situation, you can increase your protection with several options from the HOME contract:
- Garden & outdoor facilities: garden sheds, outdoor furniture, tools, swimming pool, equipment.
- Renewable energy: solar panels, heat pump, geothermal, related facilities.
- Sustainable mobility: protection for bicycles, e-bikes and related equipment.
- Wine cellar & food: temperature variations, accidental loss of liquids, wine cellar.
- Mobile multimedia: smartphones, laptops, tablets during private trips.
These options allow you to adapt your coverage to your home.
The distinction is important because the coverage needs are not the same.
Owner occupant:
You live in the unit, your contract covers the building, your contents (furniture, valuables) and your liability related to the unit.
Landlord (non-occupant):
You're renting out the unit. In this case, the contract must cover the building and your liability as a landlord, but not the tenant's contents (it is up to the tenant to insure himself). You can also take out a guarantee for unpaid rent or property damage, offered as part of the HOME contract for non-occupant owners.
The tenant, on the other hand, should have his own rental liability insurance. It can be helpful as a home owner to request a certificate.
If you own a condominium, two levels of insurance coexist:
- Condominium insurance: subscribed by the property manager, it covers the common areas (stairwell, roof, façade). You contribute to it through your charges.
- Your individual insurance: it covers your private lot: the inside of your apartment, your property, and your civil liability.
Point of vigilance: check that your individual contract does not duplicate that of the condominium, and that there are no coverage gaps between the two.
There is no single price. The price depends on several factors:
- The area and type of property (detached house, apartment, semi-detached house)
- Location (flood zone, city centre, rural area)
- The level of coverage chosen (basic plan vs. comprehensive cover)
- The value of the contents to be insured
- The deductible retained
So, it's hard to give a fixed price. Asking for a custom quote remains the only way to get a reliable price.
A few considerations before signing a contract:
- Correctly assess the value of your property and its contents. An underestimation results in partial compensation in the event of a claim (proportional rule).
- Read the exclusions. Each contract has situations that are not covered. Better to know them before than after.
- Remember to update your contract after having work done, an expansion or the purchase of valuable goods.
No, there is no general legal obligation. But the bank requires it in case of mortgage credit, and the condominium rules may impose it.
The owner insures the building and his civil liability related to the property. The tenant insures his personal property and his rental civil liability. As an owner-occupant, you cover both aspects.
Flood risk is not covered automatically. Natural disaster coverage is often an extension to be purchased separately. Our home policy includes flood coverage from the "Essentielle" plan.
Yes, several plans exist. Each room-mate can take out individual insurance to protect their personal property and civil liability, or opt for a common contract that covers the entire unit. At least one of the room-mates must be insured to meet the owner's requirements. Clarify this issue as soon as the lease is signed.
Without insurance, you must assume the full financial consequences of a claim with your personal funds. In case of fire, water damage or natural disaster, repairs can reach tens of thousands of euros. You are also responsible for harm to others, including neighbours.
Solar panels installed on your roof are usually covered by your home insurance, as long as you declare them and take out the appropriate option. They then benefit from the same guarantees as your building. Garden furniture can also be insured depending on the chosen plans.
Declare your claim as soon as possible to your agent or directly in your customer space myBaloise (available 24/7).
In Luxembourg, everyone assumes their share of responsibility.
The owner pays the insurance that covers the building itself: walls, roof, façade, pipes. This insurance protects his property against major risks (fire, storm, structural water damage). If the property is financed by a mortgage, the bank usually requires this coverage.
The tenant pays for the insurance that covers his personal property (furniture, appliances, clothing) and his rental civil liability — i.e., the damage he could cause to the unit during the term of the lease (water damage caused by an improperly connected appliance, for example). See our dedicated article on this topic.
Yes, and it's even recommended. The rental risk covers damage you could suffer as a landlord: unpaid rents or damage of the unit by the tenant.
Our home insurance offers specific guarantees for non-occupant home owners. You can protect your rental income and wealth against the vagaries of renting. This optimal coverage is adapted according to whether your property is an apartment or a house.