Are you living in Luxembourg or moving to the Grand Duchy and wondering which insurance policies are compulsory, which are highly recommended and how to optimise your daily protection? Between the legal requirements, expectations of landlords or banks and the risks of everyday life, it’s not always easy to navigate the system. This article provides an overview to clarify things and help you make the right choices with complete peace of mind.
Civil liability car insurance
Civil liability car insurance is compulsory for every motorised vehicle driven on a public road. It covers material damage and bodily injury that you may cause to another party in the case of an accident with:
- your car,
- a caravan,
- a trailer.
Important: this insurance does not cover damage suffered by the driver or damage to your own vehicle. That’s where it might be helpful to add on other warranties like driver’s insurance.
Private civil liability insurance
Private civil liability insurance is compulsory in specific cases, particularly if you are:
- a dog owner,
- a pleasure boat owner,
- a hunter who practices this activity in Luxembourg.
This insurance covers damage that you or those for whom you are responsible (including your pets) may cause to third parties in private life.
Professional civil liability insurance
Some regulated professions are legally required to take out professional civil liability insurance, which protects against damage caused to clients or third parties in their work. This applies, for example, to the following main professions:
- doctors,
- architects,
- lawyers,
- estate agents,
- travel agents, etc.
This type of insurance is essential to guarantee your financial security in the event of a dispute, a professional error or negligence.
Supplementary health insurance
In Luxembourg, the National Health Fund (CNS) covers part of the medical fees, but not all. Supplementary health insurance covers:
- non reimbursable dental fees,
- glasses,
- specialist consultations,
- hospital stays in a private room, etc.
It may also include treatment abroad or alternative medicine depending on the policy.
Home Insurance
Even though it is not compulsory by law, home insurance is almost always required:
- By the owner, if you are a tenant (part of your tenancy agreement)
- By the bank, if you are a homeowner (occupying the house) with a mortgage.
It covers:
- water damage,
- fire,
- natural disasters,
- burglary.
For a non-occupying owner (rented or unoccupied property), this insurance is strongly recommended to avoid nasty surprises in the event of a claim.
Driver's insurance
Did you know that the driver is not covered by his own civil liability car insurance in the event of an accident for which he is responsible? That’s a little-known fact!
Driver’s insurance fills this gap by covering:
- injuries to the driver,
- medical fees,
- a loss of revenue in the event of incapacity,
- even compensation in the event of death or disability.
An essential supplement if you wish to drive with peace of mind.
Take the time to assess your personal and professional situation, and do not hesitate to consult an insurance agent to ensure you are making the right choices.