What's the specific insurance coverage that's most essential?

In Germany, understanding the various insurances available can be crucial for financial security. Here's a breakdown of some essential insurances to consider.

For property owners, Residential Property Insurance and Elementary Damage Insurance are important. The former protects your home, while the latter provides an extra layer of protection against existential threats such as floods. For homeowners with little movable inventory, Household Contents Insurance may not be necessary.

Health insurance is mandatory, and long-term care insurance, unemployment insurance, liability insurance, disability insurance, accident insurance, foreign health insurance, and pension insurance are all important to consider. However, insurances like mobile phone insurance, glass insurance, bicycle insurance, eyewear insurance, and luggage insurance are often unnecessary as damages are already covered by other policies or credit cards.

Legally, you must have Car Liability Insurance and health insurance. Liability insurance and, in most cases, disability insurance are strongly recommended. Legal Expenses Insurance can cover the costs of court disputes and provides a suitable lawyer on request.

Building Insurance is a must for property owners, and for the self-employed, a Daily Sickness Benefit Insurance is beneficial. Disability Insurance (DI) secures income in case of an accident or illness, protecting one's earning capacity, which can be worth several hundred thousand euros over a working life.

For freelancers, sick pay coverage can be obtained by paying an additional 0.6 percentage points in contributions to a statutory health insurer, or by taking out a Daily Sickness Allowance Insurance with conditions you can choose within certain limits.

Rent Loss Insurance ensures financial compensation in case of rent arrears and often covers damage to the property. An Inability to Work Insurance can be taken out as an additional clause in a disability insurance, applying if one is unable to work for at least 6 months at a stretch, but re-entry into working life is foreseeable.

In Germany, the legally mandatory insurances are a statutory or private health insurance, motor vehicle liability insurance, professional liability insurance, hunting liability insurance for hunters, dog liability insurance for dog owners (in several federal states), and in Berlin, Hamburg, Lower Saxony, Saxony-Anhalt, Schleswig-Holstein, and Thuringia, dogs must be insured by Dog Liability Insurance in principle.

Lastly, Private Pension Insurance, Private Health Insurance, long-term care insurance, disability insurance, liability insurance for self-employed persons, and unemployment insurance can be claimed for tax purposes. Travel health insurance is inexpensive, costing around 10-20 € per year for individuals and 30-40 € for families, and some credit cards include it as part of their package. A Private Liability Insurance is indispensable for covering property and personal damage in everyday life. It is affordable and can pay out up to several million euros in the event of a claim.

Remember, the cost of disability insurance depends on the contract, and the younger and healthier one is at the time of conclusion, the cheaper it is. Make sure that psychological illnesses are also included. It's always best to inquire at the local authority office if you're unsure about any insurance requirements.