In Luxembourg, it is not legally compulsory to take out home insurance. However, if you are a homeowner, the bank will probably ask you to insure your property when you take out your mortgage. In the case of tenants, the situation may vary. The lease contract may require the tenant to take out home insurance. It is therefore essential to check the terms of your contract. Whatever your situation, it's still advisable to take out home insurance to cover the risks of any claims, otherwise you'll have to pay for any damage to your property or furnishings.

Home insurance covers personal belongings, real estate and civil liability. In the event of water or fire damage to a property, the insurance company will cover the cost of repairs.. 

It is therefore essential for the owner or the tenant to take out home insurance which will cover repairs to the damage suffered or caused.

In general, home insurance covers all damage or losses resulting from:

• a fire;
• climatic or natural events;
• damage or losses caused by water;
• breakage of glass, windows and mirrors;
• theft, attempted theft, or vandalism of the contents;
• the civil liability arising from the insured property ...

In addition to these major events, a home insurance policy enables you to extend the level of cover so that all your belongings are covered (mobile devices, etc.). The policy is flexible and can be tailored to suit individual requirements. It is crucial to assess the various risks carefully so that you have a policy tailored to your situation.

In principle, all the contents of your home are insured by your insurance company. To do this, you need to make sure that all your possessions have been insured for their fair value. Everything must be declared when you take out your policy, so that the level of compensation in the event of a claim can be estimated as accurately as possible.

An estimate must be made of the total goods value but also the value for certain types of goods, such as: 

• valuables (paintings, rugs, sculpture ...);
• precious objects (jewellery, watches ...);
• digital equipment (mobile phones, laptops, tablets, watches and connected headsets, ...);
• a wine cellar;
• collections of all kinds (books, comics, etc.);
• the contents provided by the owner (kitchen equipment or furniture, etc.);
• a garden;
• solar panels...

Personal liability cover is not generally included in home insurance policies. Some insurance companies offer this cover as an additional option rather than as a standard inclusion. If your policy does not include this cover, it is advisable to add third-party liability insurance as additional cover for optimum protection.

This cover is essential, as it covers damage caused to third parties through negligence or carelessness. This could involve scenarios such as your pet or dog accidentally breaking a valuable object at a friend's house.

So it's crucial to check the terms and conditions of your policy to see whether it includes personal liability cover.

The average cost of home insurance in Luxembourg depends on a number of factors. The type of property (flat or house), your status (tenant or owner) and the surface area in m2 of your home all have an influence on the cost.

It is therefore difficult to give an average cost, as too many factors influence it.