Insurances in Germany: keeping you and your family safe!
August • 27th, 2019
by Expat in the City Team
What are the most important insurances in Germany you need to have?
Insurances…of course you know they are important. And you know you need to get it sorted for both you and your family. Preferably sooner than later. But where to start? The German insurance system can feel and sound pretty complicated (and the long German words certainly don’t help!) but help is here!
In this article our partner MW Expat Solutions breaks down what insurances are most important (and which ones are compulsory) for you as an expat living in Germany.
Health insurance - (Krankenversicherung)
When you live or work in Germany you need to have health insurance. This is one of the compulsory insurances, no way around it folks. Germany has a dual system in place, which means that when you are a resident in Germany you can choose for either private or state (Statutory) health insurance. However this choice is only an option when you meet certain criteria:
State health insurance is mandatory unless you
- earn over €60,750 per year before tax,
- earn under €450/month
- are self-employed.
In these cases you can choose to insure yourself privately instead.
It really depends on your situation what is then the right choice for you and your family members. It depends on your current situation as well as your future plans and needs. To be able to make the right choice you need to consult with your insurance adviser. They will know the questions to ask in order for you to make the choice that is right for you.
Don’t forget that nursing care insurance (Pflegepflichtversicherung) is also compulsory. This insurance secures the risk for long-term care. Should you need care in the future, this insurance will (partly) cover the costs. Normally this insurance goes hand in hand with your medical insurance and is insured with the same company.
In Germany your employer will pay half of your health insurance costs (excluding the supplementary charge), however the maximum amount he will contribute is €351.66/month for your healthcare and €69.20/month for your nursing care insurance. Should the premiums be higher, the costs are covered solely by yourself.
Personal liability insurance - (Private Haftpflichtversicherung)
This insurance is really one to have, although not compulsory it could save you a lot of money and stress as it offers cover for the financial implications arising, should you or your family cause unintentional damage to a third party, either physical, material or financial. In Germany there is no general limit to how high a claim can be, meaning any caused damage can threaten your financial future. It is not an expensive one, so make sure not to forget it. Especially if you have kids, you wouldn’t be the first parent to pay for a broken window or damaged iPad.
On 17 September 2019 Expat in the City is organising a free Expert Talk together with MW Expat Solutions to explain the insurance system and share with you how the German state can pay for your provisions. Sign up here
Legal aid insurance – (Rechtsschutzversicherung)
Like in any country, the costs for solicitors, court cases and proceeding in Germany are quite steep. It’s not uncommon for a legal process amounting to several thousand Euro. Legal aid insurance covers the costs for your chosen lawyer, court costs, official evaluations and assessments. It also covers the costs of the opposite party should you be made liable for them.
Occupational disability insurance – (Berufsunfähigkeitsversicherung)
This is one of the insurance you need to get quickly after you arrive in Germany.
The problem you face coming from abroad is that until you have paid into the state pension scheme for 5 years, you have no cover should you no longer be able to work due to an accident or illness. This insurance will protect the financial future of your family should you suffer an accident or illness. Occupational disability insurance offers worldwide cover and benefits.
Household contents insurance – (Hausratversicherung)
This insurance covers the costs of replacing the inventory of your household. It offers cover in case of damage occurred through fire, mains water, storms, hail, robbery through break ins, theft and vandalism. If you are renting a furnished apartment many landlords now insist on you having a “Hausratversicherung” before letting it to you.
Learn more about MW Expat Solutions www.mw-expat.com