Home insurance in Luxembourg

Your insurance needs differ significantly depending on whether you own or rent your home in Luxembourg.

Owners need to insure both the building structure and their personal belongings. If you have a mortgage, your lender will require building insurance (assurance bâtiment) as a condition of the loan. This covers the walls, roof, floors, built-in fixtures and installations against fire, storm, water damage and other perils.

Tenants need contents insurance (assurance locataire) to protect their personal belongings and cover their civil liability toward the landlord. While not legally mandatory, most landlords in Luxembourg include an insurance requirement in the lease agreement. Tenant policies are generally less expensive since they do not cover the building structure. Our article tenant or owner: what should you insure? covers both situations in detail.

A standard multirisque policy in Luxembourg bundles several types of coverage into one contract:

• Fire and explosion - Covers damage from fire, smoke, lightning strikes and gas explosions.
• Water damage (dégâts des eaux) - One of the most common claims in Luxembourg. Covers burst pipes, leaks, overflow and infiltration.
• Storm and hail - Covers damage from wind, hail, falling trees and heavy rain.
• Theft and vandalism - Covers stolen or damaged belongings, including forced entry damage to doors and windows.
• Glass breakage (bris de glace) - Covers windows, glass doors, mirrors and sometimes ceramic hobs.
• Private liability (RC vie privée) - Covers damage you accidentally cause to third parties in your private life - not just at home.

Most policies offer new replacement value (valeur à neuf), meaning damaged items are reimbursed at their current replacement cost rather than their depreciated value.

Understanding what typically goes wrong helps you appreciate the value of proper coverage:

Water damage is by far the most frequent claim. A burst pipe during a cold spell, a forgotten running tap, or a washing machine leak can cause thousands of euros in damage to floors, walls and furniture - often affecting neighbours below as well, which is where your RC vie privée comes in.

Storm damage is increasingly common with Luxembourg's changing weather patterns. Fallen branches on your roof and hail damage to skylights are covered under a standard multirisque policy; flooding from heavy rain is included by some insurers and optional at others.

Theft remains a concern, particularly in border areas. Your policy covers stolen valuables and the cost of repairing forced entry damage. Insurers may offer premium discounts if you install a certified alarm system.

Beyond the standard multirisque coverage, several optional extensions can enhance your protection:

• Natural disasters (catastrophes naturelles) - While some natural events are covered under storm insurance, dedicated flood and earthquake coverage provides broader protection, increasingly relevant given recent weather events in the Greater Region.
• Garden and outdoor structures - Covers sheds, fences, terraces and garden furniture against the same perils as the main property.
• Valuables and art - Standard contents limits may not suffice for high-value jewellery, art or collections. A specific rider increases the reimbursement ceiling.
• Home office equipment - With remote work now common in Luxembourg, covering professional equipment used at home is a prudent addition.

If you are also considering financial protection for your family, our life insurance page covers mortgage protection (solde restant dû) and family protection.

Several factors determine the cost of your home insurance in Luxembourg:

• Property size and type - Larger homes and detached houses cost more to insure than apartments. The number of rooms and total surface area directly impact your premium.
• Location - Properties in flood-prone areas or zones with higher burglary rates may attract higher premiums.
• Construction type - Traditional stone or brick construction is generally cheaper to insure than modern glass-heavy or timber-frame buildings.
• Contents value - The total estimated value of your personal belongings determines the contents coverage ceiling and therefore the premium.
• Security measures - Certified alarm systems, reinforced locks and fire extinguishers can earn you premium discounts.
• Claims history - A clean claims record over several years typically qualifies you for loyalty discounts.