Personal liability insurance, also known as private liability or haftpflichtversicherung, is not mandatory insurance in Germany but it is highly recommended.

Why is it a must-have insurance?

So, here in Germany, you're 100% liable for any accidental injury or damage you cause to someone else or their property. They can ask you to pay for repairs, replacements even medical bills and loss of earnings, these can easily mount up and cost you a pretty penny and without insurance, you would have to pay these out of pocket.

Around 83% of German residents have this insurance and some landlords even require you to have this policy to rent an apartment (though it's not a legal requirement and they can't enforce this, they'd likely just select a different candidate with this insurance to rent the apartment to).

What does it cover?

Personal liability insurance covers you in a range of situations such as personal injuries, property damage, and financial losses caused by the policyholder.

For example, if you were to walk in a bike lane and a cyclist swerves to miss you, falls and is injured and their bike is damaged, the insurance will cover their medical expenses and the cost of repairing the bike.

The cost of the insurance is pretty low compared to the potential costs of damages, making it a good idea for peace of mind.