What insurance do you need for your home?
Are you about to move to Luxembourg? Whether you are a homeowner or a tenant, it is essential to find the right home or housing insurance to protect your home and your belongings.
To help you insure your new home in Luxembourg, here are some essential points to bear in mind:
- Who needs to take out home insurance?
- What risks are covered by home insurance?
- Which policy should you choose and how should you assess the value of your belongings?
- Which company should you contact?
- What should you do in the event of an emergency in your home?
Home insurance is essential in Luxembourg
Certain types of insurance are mandatory in Luxembourg. This is the case for home insurance, particularly for homeowners. If you rent your home, we also recommend that you take out an insurance policy.
By taking out a home insurance policy with an approved insurance company, you are protecting your home and your belongings against the many incidents that may occur. But home insurance also allows you to protect your loved ones. It covers your civil liability towards third parties.
By taking out a home insurance policy, you will receive partial or total reimbursement in the event of damage . Home insurance also provides civil protection for the occupants of the home.
Remember to cancel your insurance policy if you sell your home or move out if you are a tenant.
Who should take out home insurance in Luxembourg?
Whether you are a tenant or a homeowner, it is strongly recommended that you take out home insurance as soon as possible. Non-occupyinghomeowners , i.e.,those who rent their home to a third party, are also affected.
Home insurance for tenants in Luxembourg
In Luxembourg, tenants or roommates can take out insurance to cover their home, furniture, and personal belongings. This provides insurance coverage against the risks of fire, storm, water damage, and theft.
Luxembourg law does not require tenants to take out insurance. While in some countries, such as France, tenant liability insurance is mandatory, it is only optional in the Grand Duchy of Luxembourg.
Please note! Although it is not compulsory to take out home insurance, tenants are nevertheless obliged to pay for any damage caused by fire or water damage, for example. Taking out insurance is therefore strongly recommended...
Home insurance for owners occupying their property
Home insurance covers homeowners for damage to their property. In the event of a claim, the insurer will pay compensation to cover all or part of the damage.
Insurance for landlords who rent out their property
The owner of a rental property has the option of taking out home insurance. This covers the risks of fire, glass breakage, theft, and water damage. There are risks to be covered that are the responsibility of the owner, not the tenant.
Please note that even if there is no insurance, the owner must repair the damage as soon as possible for the well-being of their tenant.
Main incidents covered by home insurance in Luxembourg
Generally, home insurance policies offer comprehensive coverage. This includes coverage for various risks that may occur in a home.
Insurance against water damage
In the event of flooding or water damage, you will be reimbursed for damage to the building and damaged equipment. Please note that there are two distinct cases:
- damage caused by a leak in your own property affecting third parties
- damage caused by a third party who is underinsured or uninsured to your own home
Insurance protection against theft
Even though Luxembourg appears to be a safe country, more and more burglaries are being committed in homes. We therefore recommend that you take out adequate theft insurance.
In addition, pay close attention to the amounts covered by this theft insurance. In order to be properly insured in the event of theft, you must declare the current value of your property to the insurance company.
Take photos and save them to the cloud. Keep receipts for your most valuable possessions, such as jewelry or works of art.
These two types of insurance coverage are very important. Do not overlook the details of these two types of coverage. Take the time to study insurance contracts, including coverage and exclusions.
Third-party liability coverage
Home insurance policies generally include property liability coverage. This covers you in the event of incidents causing harm to third parties. This is particularly the case if someone slips on your sidewalk because you have not cleared the snow.
Insurance coverage for roof damage
Although the risk of storms in Luxembourg is relatively low, it does exist. In 2019, a tornado devastated many homes in the Pétange region. Roof damage insurance generally covers material damage to your roof caused by natural causes such as hail, snow, or a tree falling on the roof.
Glass breakage: how can you protect yourself?
Glass breakage insurance covers various risks, such as window replacement. By extension, glass-ceramic hobs, sanitary appliances, greenhouses, solar panels, and/or photovoltaic installations for private use are also covered by this insurance.
Electrical installation risks
This insurance covers risks caused by electrical installations, electrical appliances, and electronic devices. At the same time, the coverage includes material damage to computer, multimedia, and office equipment.
We also recommend that you have an electrician check the electrical layout of your home. Keep proof of the inspection showing that your installation complies with regulations, especially if your home is more than 20 years old.
Earthquakes or sewer backups
Unlike its neighboring countries, natural disaster coverage is optional in Luxembourg. However, depending on the location of your home, we recommend that you take out this insurance. Many homes have been flooded in recent years due to severe weather.
In France and Belgium, it is mandatory to take out such coverage. In France, insurance must cover floods, earthquakes, and drought. In Belgium, home insurance must cover floods.
Do you have a pet? Consider taking out specific insurance.
Protect your home with a mandatory smoke detector
For your information, since January 1, 2023, a smoke detector must be installed in your home. In the event of a fire or heavy smoke, it will sound a loud siren to alert the occupants of the home and urge them to evacuate as quickly as possible before the fire department arrives.
Smoke detectors are available in DIY stores and are fairly easy to install. Firealarms must be installed in hallways and bedrooms. They are also strongly recommended in living areas, excluding kitchens and bathrooms. You can obtain a smoke detector free of charge from your local council or the Ministry of the Interior upon presentation of a letter sent to each household. Further information is available at rauchmelder.lu
What kind of home insurance policy should you take out in Luxembourg?
Home insurance offers in Luxembourg
Home insurance policies are available in several different commercial offers. These vary in terms of coverage depending on the insurance company. Choose the right coveragefor your needs.
However, home insurance policies always cover basic risks, namely: fire , water damage, theft, glass breakage, storms, and civil liability.
Home insurance and e-protection
Both homeowners and tenants are encouraged to take out "modern" insurance. This type of insurance policy covers risks related to the property, but also many other elements that are part of our "modern" lives.
68% of Luxembourg internet users say they have already disclosed banking information online. To avoid the problems associated with disclosing confidential information, some insurance companies offer an "e-protection" option. This is included in your home insurance!
"E-protection" is legal protection. This option protects the insured against risks related to the internet: fraudulent payments, disputes when purchasing from an e-merchant, identity theft, but also damage to your e-reputation.
Moving insurance in Luxembourg
When moving house, remember to insure the contents of the removal vehicle. Removal companies generally offer specific cover.
Estimate the value of your belongings for your home insurance
Distinguish between the value of the building and the value of your personal property
Tangible property is property that can be moved or taken away and has a certain value. In fact, some items are excluded from the contract, such as doors, for example. However, it is important to include everything. Remember to include your curtains and blinds, especially if they were custom-made!
How can you accurately assess the contents of your home?
To insure your home properly, it is important to accurately assess the value of its contents and personal belongings. This value will affect your home insurance and any resulting reimbursements.
Make an inventory of your belongings. This list will help you identify valuable items. The reference number, date of purchase, and invoice for the item can help you calculate the value of your belongings. These details can also be very useful in the event of a claim.
When calculating the value, it is important to take into account the current value of the property rather than the purchase price. Depending on the item, its value may depreciate over time. The insurance company will take into account the value at the time of the claim, not the purchase price.
Remember to include the value of your kitchen when calculating the amount of insurance. This value will be deducted from your total coverage in the event of a claim.
Furthermore, if your personal property includes many valuable items or works of art, it is strongly recommended that you take out a specific policy.
Take photos of your valuables and keep the receipts. In the event of a burglary, this will be very useful in asserting your rights with your insurance company! Save these documents in a physical file, in a safe place, and directly electronically on the internet.
Regularly reevaluate the insured value of your home insurance
Year after year, your personal property changes. In addition, since taking out your insurance policy, you may have acquired new sofas or purchased a new valuable item. It is important to regularly reevaluate your policy to ensure that you always have insurance that is tailored to your current situation.
What criteria determine the cost of home insurance?
The cost of a home insurance policy depends on many factors. These include the type of building, the value of the contents, and the coverage you have purchased.
Here are the different components that will be taken into account when setting the policy, with the insurance premium being the main one but not the only one.
- The annual premium: you can obtain a significant discount when you take out your first home insurance policy.
- The deductible: the deductible is the amount you are responsible for paying in the event of a claim. Be sure to compare deductibles between companies. Some companies may offer a zero deductible.
- Certain types of coverage may be offered
- Alarm coverage may be a condition for obtaining very favorable terms. Remember to notify your company if you install an alarm system after taking out the policy. Don't forget that theft is one of the main causes of claims, including in Luxembourg!
Some insurance companies offer discounts if you have no previous claims, if you purchase a fire alarm system (mandatory in homes), etc. Discounts vary depending on the policy and the company.
Which insurance company should you choose?
There are many insurance companies in Luxembourg. Each has its own specific features and policies.
It is therefore advisable to contact them directly to make an appointment with an advisor or request a quote.
Find out more about compulsory insurance and insurance companies in Luxembourg
What to do in case of an emergency or damage to your home?
Emergency assistance service
Most insurance companies offer emergency coverage. Water damage? Slammed door? Burglary? What are the right steps to take? Contact your assistance service. They will handle your request and take care of the necessary initial steps.
In the event of a major disaster, you may have to leave your home temporarily, which will turn your life upside down. Personal and financial assistance will be very useful in helping you deal with these problems.
Insurance companies' assistance services will help you change your locks. They will also take care of your temporary accommodation (hotel) or childcare during your working days. It is also important to know the amount of insurance compensation covering all the living expenses you will incur after the incident.
Before you have to deal with an emergency, check with your insurance company to get the assistance service number. Keep it handy.
Loss, theft, or misplacement of keys: what to do?
In the event of lost, stolen, or forgotten keys, the insured can contact the assistance service of the insurance company with which the home insurance policy was taken out. Some companies offer specific coverage that covers all or part of the costs in the event of a problem.
Some insurance companies will send a repairman themselves and then pay them directly. So remember to call your insurance company before contacting a locksmith!
Water damage in your home: what to do?
In the event of water damage, the first thing to do is to identify the source of the problem and deal with it as far as possible.
Find out where to turn off the water in your home. Then call your insurance company to see what steps can be taken to repair the damage.
Fire in your home: what to do?
In the event of a fire, it is important to call the fire department as soon as possible and get to safety.
Once the fire has been brought under control and access is permitted again, victims should contact their insurance company. A claim form, an inventory of damaged property (accompanied by invoices, where possible), a fire report from the fire department, and photos of the property must be sent to the insurer.
Remember to keep your invoices and photos of your property on the internet.
You are the victim of a burglary
In the event of a burglary, the first thing to do is to notify the police as soon as possible by calling 113.
Once the police have responded, it is important to notify your insurance company with which you have taken out your home insurance policy. They may take care of securing your home (changing locks, doors, windows, etc.).
You should then send the insurance company a list of stolen items, photos, and receipts, if possible. You should also reportany propertydamage and evidence of forced entry. Keep all evidence of the break-in to show to the insurance company's assessor when they visit, until the claim has been settled.
Here are three tips to reduce the risk of burglary:
- With new technologies, you can simulate your presence by programming the lighting in certain rooms or turning on your TV.
- As the door is the main point of access, you can use fingerprint recognition to open it. This makes it harder to identify the lock system.
- Every year, the Grand Ducal Police offers to monitor your home when you go on vacation.
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