Compulsory insurance in Luxembourg
When you arrive in a new country, it is important to take out the appropriate insurance to protect your property and your loved ones.
To better guide you, you will find here what type of insurance you need to take out when you arrive in Luxembourg. Some insurances are mandatory, others are recommended. We provide an update above.
Personal liability insurance
Liability insurance compensates for damage caused to third parties by wrongful acts. It covers the policyholder, his/her spouse and unmarried children living in community with him/her.
With this insurance, all unmarried persons who do not have their own home or apartment and who live in the same household as the policyholder are insured free of charge.
This personal liability insurance covers the policyholder and his or her dependents in various cases:
- private person,
- head of the family,
- owner or keeper of domestic animals,
- owner or user of household and gardening appliances.
It also covers possible accidents caused by snow or frost in front of your home. Remember that in Luxembourg, it is your responsibility to clear your portions of the sidewalks.
Why take out home insurance in Luxembourg?
Tenants and homeowners alike should consider insurance coverage for their home or apartment, furniture and personal effects. This insurance is essential to protect against the many everyday household damages.
- Rental risk insurance: as a tenant or roommate, you are expected to take out rental risk insurance. Rental risk insurance covers not only the house or apartment, but also the annexes. The furniture and your personal effects are insured against fire, water damage, theft, glass breakage and storm.
- Homeowner’s insurance: whether you live in your own home or rent it out, you must take out homeowner’s insurance to cover all risks such as damage, fire, etc.
What is the coverage for home insurance?
The home insurance is declined under several commercial offers, more or less complete and modern according to the insurance companies. Nevertheless, home insurance always covers the basic risks: fire, water damage, theft, glass breakage, storm, hail and snow pressure.
Home insurance may also provide coverage for vandalism, terrorism or sabotage.
The risks of earthquake, graffiti, theft of garden furniture or technological objects are also foreseen.
Damage from sewer backup or storm water runoff can be insured.
Attention, in Luxembourg the value of the kitchen is included in the valuation of your insurance contract. Remember to include it when you value the insurance amount!
Check your insurance policy regularly
Do you already have a home insurance policy to cover your home and belongings? It’s a good idea to review your home insurance policy regularly. The goal is to make sure you are well covered. Indeed, over the years, you have probably made new improvements to your home or acquired new objects. It is advisable to include them in your insurance policy to ensure that they are properly insured.
Compare insurance offers
It is also interesting to compare the guarantees offered on your insurance contract with other offers on the market. Some companies provide for the organization of emergency interventions related to your home: water damage, clogged pipes, electrical breakdown, broken glass, damaged roof, heating breakdown, immediate professional security in case of intrusion, etc.
In the event of an incident, the company will take charge of finding the competent professional to solve your problem as quickly as possible.
For your information, since January 1st 2023 a smoke detector must be installed in your home. In case of fire or strong smoke, it triggers a strong siren to warn the occupants of the dwelling and invite them to evacuate as soon as possible, before the arrival of the firemen.
Smoke detectors can be found in DIY stores and are fairly easy to install. Fire alarms should be installed in high traffic areas and bedrooms. They are also strongly recommended in living areas, excluding kitchens and bathrooms. ou can obtain a free smoke detector from your municipality or from the Ministry of the Interior upon presentation of a letter received by each household. More information on the website rauchmelder.lu
Owning a vehicle in Luxembourg requires a number of administrative obligations. In general, After a period of 3 months of residence in Luxembourg, the insurance company of your country of origin will no longer insure your car. You need to find a Luxembourg car insurance.
We also remind you that after a certain period, your vehicle must be registered in Luxembourg.
According to the Luxembourg law, each motor vehicle must be insured at least in civil liability .
- Liability insurance covers bodily injury and property damage caused to third parties. It is a third party insurance. Please note that this insurance does not cover damage to your vehicle or yourself in case of an accident.
- Comprehensive insurance, also known as “Casco”, covers you and your vehicle comprehensively on a daily basis. This complete car insurance includes, in addition to civil liability, legal protection, fire, theft, glass breakage and property damage coverage, as well as a driver’s guarantee. It is highly recommended because it is safer and broader than a simple “Motor Vehicle Liability” insurance.
To protect yourself, in addition to your car, Accident Insurance is also highly recommended. This is a non-mandatory insurance that provides for the payment of benefits when the insured person dies or has an accident. It also covers you on a daily basis, in case ofhospitalization, incapacity for work, sports accidents, etc. The best advice in this area? Make sure that accident insurance is general, not limited to certain categories of risks!
Complementary health insurance
Insurance companies also offer you health insurance, in addition to the NHA. This complementary health insurance is not mandatory. Although quite expensive in terms of contributions, it can be interesting to subscribe to it. You can thus obtain additional reimbursements for hospitalization, dental care, glasses, etc. It also helps to compensate for major life accidents.
Choosing an insurance company in Luxembourg
You have just arrived in Luxembourg and are looking for an insurance company to insure your property and your loved ones? Here you will find the most well-known insurance companies in the Grand Duchy so that you can insure yourself properly.
Certain risks must be covered in the Grand Duchy: car insurance, home insurance or civil liability insurance. Luxembourg insurance companies will all be able to offer you insurance policies adapted to your needs. By subscribing to the proposed insurance contracts, you will be able to insure your goods, your values or your family or even the risks related to your professional activity.
Which insurance companies in Luxembourg?
Each insurance company has a specific status: independent or affiliated with international companies, leader or not in the insurance field. Regardless of its status, all insurance offices will offer you the necessary insurance services to cover life’s risks: domestic risk, civil liability, home insurance, car insurance, pet insurance,…
You have the choice between several companies, Luxembourg or international. Below are a number of them.
You can also choose an insurance broker who will work with you to find the insurance company best suited to your needs and at the best rates.
Compare insurance and guarantees
Your choice of insurance should be guided not only by the rates, but also by the coverage offered.
Let’s not forget that insurance is primarily intended to cover one or more risks. Be sure to check which risks are covered and at what level. What are the deductible amounts, i.e. the costs you have to pay in the different risk situations?
Insurance is about peace of mind for you and your loved ones. Ask for a quote and a description of the risks covered before committing yourself, as well as the services offered!
If prices differ from one insurance company to another, it is often due to the difference in coverage offered and the conditions of insurance. Low prices are often synonymous with low coverage, high deductibles, and many exclusions of coverage. When you receive the contract and before signing it, read the general conditions carefully and especially the exclusions of coverage of the proposed insurance policy.
When it comes to car insurance, choosing a specific model of vehicle may cause you to pay a little more for your insurance. This is particularly the case for “tuned” cars. Insurance can be much more expensive…
Insurance comparison services are available on the web, so don’t hesitate to use them.
Office of the Insurance Commissioner
The CAA – Commissariat aux Assurances, is a public institution, under the authority of the Ministry of Finance. The CAA is the body in charge of the supervision of the insurance sector in Luxembourg. Among other things, it is responsible for the protection of policyholders.
You will find on the CAA website all the documents related to the insurance sector in Luxembourg. A future complaints resolution service should be offered to consumers.
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