Home insurance in Luxembourg: compulsory or not?
The law requires nothing of tenants. The lease almost always does — and missing that distinction is expensive.
Unlike motor insurance, home insurance is not made compulsory by Luxembourg law. That does not mean you can skip it: in practice two parties ask for it, and both have the means to insist.
The landlord asks for it in the lease
Almost every Luxembourg lease contains a clause requiring the tenant to insure their tenant liability and to hand over a certificate at signature. A tenant is liable for damage caused to the property during the lease — water damage running through three floors quickly exceeds what a household can absorb.
The bank asks for it for the loan
For owners the requirement comes from the bank: for as long as the loan runs, the property securing it must be insured against fire and water damage. That is a condition of lending, not a suggestion.
Tenants and owners do not insure the same thing
- A tenant insures what they own and what they might damage: furniture, the kitchen if it belongs to them, and their liability towards the landlord and neighbours.
- An owner-occupier also insures the building: walls, roof, fixed installations.
- A landlord insures the building, but not the tenant's belongings.
The most common mistake: undervaluing the contents
The sum insured for contents determines what you are paid. Add up a fitted kitchen, appliances, furniture, computers, clothing and the bike in the garage: the total is almost always higher than the figure that comes to mind first. Contents declared too low cost you at the moment of the claim, not at signature.
Information article written by iSOLUTIONS S.à r.l. It does not replace advice from your agent and creates no contractual commitment. The general and particular conditions of your contract are what count.
