So it would be really bad news if something were to happen to it— if you were to  spill coffee on it, it were to get snatched from your favorite coffee shop, or if you accidentally were to drop it. Even if your data is safely stored in the cloud (we hope you do regular backups!), having to buy a whole new device hurts—especially if you don’t have any insurance coverage to reimburse you.

So, what are your actual coverage options in Germany? Does the manufacturer’s warranty apply to laptop theft? And what about other cases, such as water damage or damage due to overvoltage? 

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TL;DR

• If you have contents insurance, your laptop is covered as a part of your ‘contents’ cover—for damage caused by fire, tap water, or burglary. If you want to be covered for theft from outside your home, you’ll need to add the Lemonade Anti-theft package.
• If you happen to damage someone else’s laptop, your personal liability insurance will have your back.
• Usually your German laptop comes with a 24-month retailer’s warranty and a manufacturer’s guarantee. 
• According to German consumer center experts (‘Deutsche Verbraucherzentrale’), a separate laptop insurance policy—in combination with your contents policy—isn’t worthwhile.

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If you’d like to dive deeper into the fascinating world of laptop insurance, we’ll answer these questions and more:

Is my laptop covered under my contents insurance?

Here’s some good news: German contents insurance, also called home contents insurance, covers your laptop, and basically everything else you own. So, your laptop is covered for the ‘perils’ listed in your policy: that’s the bad things that could happen to your stuff that insurance will cover, like vandalism, burglary, and fire.

That means you’re covered if someone breaks into your place and steals your laptop. Or, if an apartment fire destroys your belongings, including your precious device (we hope this never happens to you!).

Here’s a list of all the ‘perils’ covered by your contents insurance (‘Hausratversicherung’):

As we’ve just established, burglary and robbery are covered by your contents insurance. However, if someone steals your laptop from somewhere that isn’t your home, such as the public library or your neighborhood poke place, your standard contents insurance isn’t likely to cover you. 

But do not despair, we’ve got you covered! We’ll tell you all about a way to protect your laptop against theft from outside your home (spoiler: with the Lemonade Anti-theft package). 

In a rush and have no time to spare? Here’s a shortcut to everything you need to know about the Lemonade Anti-theft package.

Good to know: If you accidentally cause damage to someone else’s laptop—if you, for instance, step on your roomie’s device and the screen cracks—your personal liability insurance (‘Private Haftpflichtversicherung’) has your back. If you’re insured, that is. 

However, German liability insurance doesn’t cover damage you’ve caused to your own laptop (this is called ‘Eigenschaden’ in German). So, if you spill some caffe latte on your laptop or drop it, this won’t be covered—neither by German contents nor by liability insurance. And contrary to renters or homeowners insurance policies, there’s no way to add extra protection, for ‘accidental damage’ to your German policies either.

Now that we’ve gone over what is and isn’t covered by German contents insurance, let’s have a look at alternative ways to insure your device.

What’s covered by your manufacturer’s guarantee? And what’s a German warranty?

If you’ve assumed that your newly acquired laptop comes with some coverage, you’re not wrong. These coverages in Germany are called guarantee and warranty—similar to ones offered in the US. They typically cover things like defective keyboards, hard drive failures, and mechanical breakdown caused by product faults.

If you’re confused about the differences between these coverages, don’t worry, we’ve got your back. Let’s spell it out:

• The German guarantee (‘Garantie’) is provided to you by the laptop manufacturer, and is either free or costs a small fee. An example of a guarantee would be AppleCare, provided to you by Apple themselves. 

The kind of protection included in the ‘guarantee’ varies between different manufacturers. 

Typically, it’s limited to issues and damages arising from the manufacturing process (so instances during which you accidentally trip and step on your laptop aren’t covered).

• The German warranty (‘Gewährleistung’) is provided to you by the dealer/retailer. It’s based on the assumption that within the first 24 months after purchase, you can expect any device (e.g. your newly acquired MacBook Pro) to work flawlessly. If this isn’t the case, and the laptop was damaged, the dealer is legally liable for it, and you’re able to  file a claim. If you do so within the first six months, chances are that they will fix the broken parts or replace the whole device. After six months, however, you’ll probably have a harder time proving that your laptop was damaged when you got it. 

To sum up, both guarantee and warranty cover certain types of laptop damages such as faulty keyboards or a scratched exterior. However, you need to be aware that after purchase, they’re only active for a limited time frame. In addition, neither of them offers theft protection. 

Is my work computer covered with contents insurance?

No, your company’s computer wouldn’t be included in your contents policy. 

Why not? Well, because you don’t technically own it. Contents insurance only covers belongings you actually own. 

So, if your employer has given you a work laptop and this laptop gets damaged, their insurance—and not yours—will usually cover it.

However, there are some exceptions where their insurance wouldn’t kick in either.

Do you remember the scene in Friends where Chandler vandalizes his own office together with one of his work colleagues? Well, in the real world, Chandler would definitely not be covered.

If you cause damages to your equipment on purpose, you’re responsible and will have to pay. The same applies in cases where you’ve behaved negligently. If you leave your work laptop on the table of a coffee shop to get yourself a cup of coffee and it gets stolen, you’ll have to pay for a replacement.

Are there cases in which your own content insurance would cover damages to your work laptop? 

There might be. 

If you use your laptop for work, but not predominantly, it could be covered by your insurance. 

If you’re freelancing for instance, and you split your laptop 50/50 between your job and your spare time, your contents insurance might help you out in case of damage. However, only if it got damaged by a covered peril, such as a tap water leakage from your washing machine or a burglary. 

Another small disclaimer:  Your insurance provider would only refund you for half of your laptop’s value, basically the half you’re using for your personal life. 

So, after reviewing your options —do you feel like you’re sufficiently protected with contents insurance, guarantee, and warranty?

Should you get a separate laptop insurance policy? 

Let’s get some expert’s opinion on this topic: The German consumer association (‘Deutsche Verbraucherzentrale’) was quoted by the popular German newspaper, ‘Süddeutsche’, that separate laptop insurance isn’t worth getting —especially if you already have a contents policy to begin with. They think it’s not only redundant, but it can also get pretty pricey.

One last question remains: How do you insure your precious laptop from theft without breaking the bank? 

How do I insure my laptop with contents insurance?

If you decide to protect your laptop (and the rest of your stuff) with contents insurance, getting a policy with Lemonade is easy.

All you need to do is apply for an insurance policy, which takes less than 2 minutes:

1. Download the app

2. Answer a few easy questions

3. Get your policy (and the peace of mind that comes with it) in seconds

Lemonade contents insurance covers all your things that you usually keep in your home from property damage and loss. Namely, we cover perils such as fire, burglary, vandalism and water damage.

To insure your belongings, including your beloved laptop, expensive smartphone, and any other electronics against theft outside of your home, you can simply add the Anti-theft package to your contents policy. The package even covers you on trips abroad for up to three months.

If you have any additional questions about laptop insurance cover, feel free to check out our FAQs, and if you’re ready, go ahead and take Lemonade for a spin—it’ll take you less time than restarting your laptop.

The post Your Top German Laptop Insurance Questions, Answered appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

But don’t worry, you don’t have to go through the process alone. In this post, we’ll take a deep dive into the German rental market, its peculiarities, and general things to watch out for. 

Here’s what we’ll cover:

• Renting vs. buying an apartment in Germany
• Rental prices in Germany
• Surprising facts about renting a German apartment
• How to look for an apartment in Germany
• What to bring to an apartment viewing
• The German security deposit (Mietkaution)

Should I rent or… should I buy? 

First of all, this decision probably depends on how long you will plan to stay in Germany. If you’re there on a work assignment that lasts two years, it might not even be worth it to consider home ownership. If you’ve decided to set down actual roots in your new country of choice, then that’s a different story.

But what do “Ze Germans” prefer?  Surprisingly, a bigger part of the German population is renting a place rather than buying it. Renting is still the rage even though, depending on where you want to live, prices seem quite reasonable throughout Germany. 

According to a Statista study from 2018, nearly 60% of all German households were renters—marking Germany as a country with a relatively low home ownership rate among European countries. But why is that, you might be asking? We assume that at least part of the reason is that German law is largely pro-renter. Compared to other places in the world, renters enjoy a set of rights that protect them, like in the event of unjustified conviction. Most tenancies in Germany are unlimited, meaning you cannot be kicked out of your apartment all that easily—only if your landlord wants to move into their property themselves (called ‘Eigenbedarf’), or in the event you don’t pay your rent and amenities. 

Pro tip: Should you decide to join the crowd of German renters, we recommend a membership for your local ‘Mieterverein’ or ‘Mieterschutzbund’ (German tenant association). This might sound unnecessary since renters are so protected in Germany. However, it’s still worth joining since membership fees are pretty low and the organization can really help you out in case you ever need legal advice regarding your rent, renters rights, or in case you simply need some support while handling a quick negotiation with your landlord. 

Now that we’ve settled the renting vs. buying aspect, let’s look at how much it costs to actually rent a place in Germany.

5 facts about rental prices in Germany

‘Cold’ vs. ‘warm’ rent. 

When looking for an apartment, you’ll likely encounter two concepts related to rent in Germany—cold rent (‘Kaltmiete’) vs. warm rent (‘Warmmiete’). For the former, amenities are excluded, whereas the latter includes additional expenses such as electricity and water costs and thus, will be significantly higher than ‘Kaltmiete’. 

Average rent prices.

According to Statista, in 2020 the average monthly (cold)  rent of a private household was 745 Euros. Doesn’t sound too bad, does it? However, naturally rent prices vary depending on where you live. So don’t expect the same rent in Berlin, Bielefeld, and Baden-Baden. 

Most expensive German cities to rent an apartment.

You might have guessed it, the popular German cities such as Munich, Berlin, Frankfurt and Hamburg are high up on the list of most expensive rentals across Germany. According to Statista, renting an apartment in Munich in 2022 costs on average 19,79 Euro per square meter, which would add up to approximately 1,200 Euros for a 646 square foot apartment. For a full overview, check out this list of the ten most expensive German cities.

‘Rent Mirror’ or as the Germans would say: ‘Mietspiegel’.

What about your city of choice? How can you know if the apartment you’ve found is priced reasonably, or if you’re being ripped off by a greedy landlord? We suggest you check out the ‘Mietspiegel’ (rent mirror) for your city. For  example, if you’re planning on renting in beautiful Freiburg right next to the scenic Black Forest, check out the ‘Mietspiegel Freiburg’. 

This resource provides you with information regarding average local rent (‘Kaltmiete’) for the different neighborhoods.

Is the cost of rent increasing in Germany? 

The short answer is, yes, it definitely is.

 According to the Federal Statistical Office, German rent has increased by over 10% on average between 2015 and July 2022. However, this only applies to the average rent. Rent prices in popular cities such as Berlin have not only increased, but rather skyrocketed. Between the third quarter of 2021 and the third quarter of  2022, rent in the German capital climbed by over 20%. 

Now that you know all about German rent prices, let’s dig into some facts about the German rental market as a whole. 

3 surprising facts about renting an apartment in Germany

1. A lot of German rental flats come  unfurnished.

The majority of German rentals come empty—they don’t even include a built-in-kitchen (unimaginable in the States, right?). This leaves you with a couple of options: you either a) bring your own kitchen (watch out for long delivery times and high prices!), b) try to buy the former tenant’s kitchen, or c) go for (the few) apartments for rent that come with a kitchen by including the right lingo in your search—in this case ‘EBK’ or ‘Einbauküche’. 

2. Germans count differently.

Germans count the overall number of rooms, and not bedrooms. So if your apartment consists of one bedroom and one living room/dining room, it’s a 2-room apartment (‘Zweizimmerwohnung’). This is important, especially if you’re planning on sharing your apartment with roommates, and need to make sure it has a sufficient number of separate bedrooms.

3. Germans start counting at the ground floor level.

In the US, when entering through the front door of a building, you find yourself on the first floor, the floor above is called the second floor, and so on. However, in Germany the floor on the street level is referred to as the ground floor (‘Erdgeschoss’), and the floor above that as the first floor. This means that any expat, living on the second floor in a German building actually lives on the third floor in US terms. We recommend you factor this in in case the building has no elevator. 

Now that you know what to watch out for when it comes to German rentals, let’s check which search platforms might come in handy in your apartment hunt. 

How to look for an apartment in Germany

Despite the fact that at times, you might feel that Germans are still pretty ‘old-school’ when it comes to technology, most of the initial apartment hunting happens online, on the following platforms:

• ImmobilienScout 24
• Immowelt
• Immonet

These three are all quite popular among Germans. However, if you already know you want to live with roomies, check out wg-gesucht.de, a platform for finding shared  apartments (‘Wohngemeinschaft’ or ‘WG’).

If you’ve got some spare cash at hand and no time to engage in endless internet searches, you can also work with a real estate agent. They know the German language, are familiar with the market, and can save you a huge amount of time. On top of that, you’ll only have to pay the broker once they’ve actually found you a suitable apartment. But how much will you have to pay exactly? Usually if you hire an agent, you will need to pay the equivalent of three months rent. 

Another piece of advice: Use your personal network—even if it’s (still) pretty small. Like in any country, if someone recommends you to a potential landlord, you’ll have a much better chance of actually securing yourself a spot. 

So, if you think you’ve found the perfect place for you, what would you need to bring to an apartment viewing to maximize your chances? 

5 things to bring to a German apartment viewing

As you’re probably aware by now, Germans are quite a serious people, and apartment viewing is no exception. This means that your potential landlord will expect you to come as prepared as possible. This especially applies to expats who haven’t mastered the German language yet.

So, let’s quickly review what you’ll have to bring. 

1. Schufa-Auskunft. This is basically like a credit report. It shows your landlord that you’ll be able to pay your rent every month. However, if you’ve just moved to Germany, this document might be blank. If this is the case, make sure to bring an alternate document that shows that you have sufficient funds, like a work contract or tax returns. 

2. Your last three payslips. If you’re a freelancer, bring a statement of income from a tax advisor instead. Just so you know, in Germany, roughly one third of your salary should be budgeted for your monthly rent. 

3. Mietschuldenfreiheitsbescheinigung. Quite high up on the list of longest German expressions ever, but what does it mean? This document confirms that you’ve always paid your rent and don’t owe your previous landlord any money (Here’s a template).

4. Your ID—plus a copy of your ID. 

5. Bonus: Proof of your personal liability and contents insurance. Contents and liability insurance (which taken together are quite similar to US renters insurance) aren’t mandatory in Germany.  Still, landlords might ask you for proof of both personal liability (“Privathaftpflichtversicherung”)  and contents insurance (“Hausratversicherung”). 

According to the German Tenants’ Association (“Deutscher Mieterbund”) this request isn’t legally valid. However, reality looks slightly different. As you know by now, there’s lots of competition when it comes to affordable housing in Germany, so you should give yourself a head start, and consider getting yourself both insurances and look as appealing as possible to your potential new landlord . 

Here’s what they cover in a nutshell: 

• Personal liability insurance. This insurance covers you if you accidentally injure others or cause damage to their stuff—including your rental apartment. It’s no wonder landlords really want you to get this insurance.
• Contents insurance. Your contents policy protects your stuff, more specifically everything you’d take with you if you were to move, from damages caused by things like fire, tap water, or a burglary.

A few (last) words on German rent security deposits (‘Mietkaution’)

The rent deposit (‘Mietkaution’) serves as a security for your landlord, and can be used in case you accidentally cause damage to the apartment, fail to settle outstanding bills, or simply haven’t paid up on time. The maximum amount your landlord can ask for in a security deposit is three months of rent (‘Kaltmiete’). 

Btw, if your landlord refuses to pay back your deposit after you move out, check out these tips to help you get your money back.

Let the apartment hunt begin!

The post Planning to rent an apartment in Germany? Here’s what expats should know. appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

The question is, now that you’ve made Germany your home should you give into German peer pressure and get yourself a bunch of insurance policies? Where would you even begin?

In order to answer these questions (and more!), we’ll take you on a journey deep into the heart of German insurance. Don’t worry, it’s less complicated (and more fun!) than it might sound.

Here’s what we’ll cover:

• Which insurances are mandatory in Germany?
• Which insurance policies should I get as an expat in Germany?
• When should you think twice about insurance?

Which insurances are mandatory in Germany?

Some insurance policies are much more than a mere ‘nice to have’ and are actually required by German law. Let’s get right to them!

Health insurance.

Getting health insurance in Germany is mandatory. However, in contrast to the U.S., German health care is quite affordable to the broad public. More on that in a bit.

So, what does it cover? Generally, German health insurance reimburses you for things like medical treatment costs and required meds (much like U.S. health-insurance). 

Health insurance in Germany can be divided into public health insurance (gesetzliche Krankenversicherung, or GKV) or private health insurance (private Krankenversicherung, or PKV). So, what are the differences between these coverages?

• Public health insurance. The German public medical system is pretty good, and in most cases, there is no real need to get private insurance. Each month, a percentage of your monthly salary is automatically deducted to cover your insurance premium (currently 14.6%). This means your premium depends on your income, rather than your age or health. Plus, public health insurance providers cannot reject insuring you based on your past medical history. 

• Private health insurance. First things first: Not everyone is eligible for private health insurance in Germany: Only if your salary exceeds 64,350 Euros a year (5,362.50 Euros a month), you can get yourself private insurance. However, if you’re self-employed, freelancing, a practicing physician, or a civil servant, this rule doesn’t apply to you, and you can simply go ahead and get private health insurance anyways, even if your income is below the minimum.

In contrast to public health insurance, the premium for your private health insurance will depend on your age and overall health.

Car liability insurance (“Kfz-Haftpflichtversicherung”).

Anyone who’s driving a car in Germany (or any other motorized vehicle), needs insurance for it – just like in the U.S.. Without getting a basic car liability insurance policy, you can’t even register your car in Germany. 

But what does it cover? 

Your car liability insurance offers coverage in case of bodily injury or property damage to other people (or their stuff) as a result of your actions. So, if you unintentionally cause an accident that injures others (which we hope will never happen!), your insurance will help you cover their medical bills and car repair. 

Btw, in case you want to protect yourself against damages to your own car, you’ll need additional insurance – you can either go with partial comprehensive coverage (Teilkasko) or full comprehensive coverage (Vollkasko).

Professional liability insurance (“Berufshaftpflichtversicherung”). 

This kind of insurance is only mandatory if you work in an ‘advisory role’, like a doctor, lawyer, or architect. 

As its name already implies, it falls under the category of liability insurances – which means it’s all about other people and their things (in contrast to your own stuff). More explicitly, professional liability covers damages you cause to others while you’re engaged in some kind of  self-employed professional work. 

To make things more tangible, imagine the following scenario: You work as a tax advisor and notice that one of the tax assessments you’re reviewing is incorrect. Unfortunately, you notify relevant parties too late. Shoot. Your miss leads to your client not getting back the money she deserves. Luckily, your professional liability insurance will cover the financial damage you’ve caused her.

Dog liability insurance.

Obviously, this insurance policy is only relevant for you if you actually… own a dog (duh!). Dog liability coverage protects you in case your fur baby causes injuries or damages to others. When it comes to certain federal states, such as Berlin, Hamburg, and Lower Saxony, this insurance is mandatory.  For other federal states, such as Bremen, Hessen and Nordrhein Westfalen, you only need to get dog liability if your dog is considered a ‘dangerous breed’, such as Rottweilers or Bull Terriers. 

By the way, if you’re the proud owner of a different kind of (small) pet and they cause damage to other people’s belongings, this  would be covered by your personal liability insurance (which we’ll get to in 2 seconds!).

Now that we’ve reviewed the (long) list of mandatory insurances, let’s get to the core of our post: The smart insurance policies to have in Germany.

Which insurance policies should I get as an expat in Germany?

To answer this question, let’s quickly review the basics of how  insurance serves you in the first place. In a nutshell: It’s here to help you out if things go really south. Basically, events that you won’t be able to pay for out of your own pocket. Insurance protects you from losing everything from one moment to the next.

Keep in mind: Insurance only makes sense for situations that can potentially lead to your complete financial ruin. If you can easily cover costs yourself, there’s no reason to get insured in the first place. For example: If you cause an accident that seriously injures several people, you could be liable for millions in damages. However, if you drop your MacBook, it will likely cost around 1,000 Euros to replace the whole thing. 

You won’t be able to pay for scenario number one out of your own pocket, whereas number two might leave you temporarily broke, but realistically, it isn’t completely unaffordable for the average person. 

But enough about the theory. Here it is, an overview of the most important insurance policies you shouldn’t skip while living in Germany:

#1 Personal liability insurance (“Privathaftpflichtversicherung”)

Contrary to American liability coverage, which is part of your renters insurance policy, German liability is its own standalone, and rather comprehensive insurance policy. German liability coverage starts at several million Euros in coverage.

Here’s a quick summary of what personal liability is all about: This insurance covers you if you accidentally injure others or cause damage to their stuff. Protection ranges from minor mishaps, like if you spill red wine on your bestie’s sofa, to more dramatic cases, like if you’re responsible for chronic third-party injuries. Btw, your liability insurance also applies to your rental apartment, so if you accidentally cause any damages to your landlord’s shiny parquet floor, this is covered as well. 

Good to know: Damages – especially if other people get seriously injured due to your carelessness – can run into the millions. To protect you from these kinds of scenarios, private liability insurance seems quite worthwhile. In addition, your personal liability will defend you in court if necessary – against unjustified claims against you by a third party.

And the best thing, apart from comprehensive protection? It’s pretty cheap. Lemonade liability policies start at just 2 Euros a month and can be canceled any time. 

Despite its clear benefits and affordable premiums, according to the Statista Global Consumer Survey of 2020, the number of uninsured people is still quite high. In their sample of 2,000 18-64 year olds, 34% didn’t have personal liability insurance. 

#Contents insurance (“Hausratversicherung”)

Contents insurance, or household contents insurance, is pretty similar to renters insurance (excluding liability, which we’ve just mentioned). 

It covers your belongings against damages caused by: fire, smoke, explosion, burglary, robbery, vandalism, windstorm, hail, collisions by vehicles or aircraft to your home, and water damage caused by an unintended leakage of tap water, like burst pipes or appliance leaks, or leaking waterbeds and aquariums.

As you can see, contents insurance covers a whole range of possible (unfortunate) events. Imagine the following scenario: A water leak destroys all of your stuff, including your expensive vintage record player and Bose headphones. Shit happens, but you’ll be relieved if you’ve planned ahead and gotten yourself some contents insurance.

Small disclaimer: Getting this insurance is only worthwhile if you actually own stuff. If you’re a devoted minimalist and your possessions include a few select items such as your toaster and four folding chairs, it might not be worthwhile to get coverage. Even if worse comes to worst, you could still manage to replace your belongings yourself. 

To sum it up, your consideration should be: Can I easily replace all of my belongings with my own money? If your answer is no, like for the majority of us, then it’s time to get yourself some contents insurance. (Maybe try out Lemonade’s content policies?)

#Homeowners insurance (“Wohngebäudeversicherung”)

Skip ahead, if you do not currently own a house or apartment.

In general, homeowners insurance covers similar scenarios as contents insurance, namely damages due to fire, water etc. However, while contents insurance covers your stuff, homeowners insurance covers damages to the building, or built-in structures such as your heater, or the parquet floor. 

Imagine a leaky washing machine ruins your wooden floors and the bottom of your doors – leading to some pretty extensive damage. Luckily, homeowners insurance can help you out.

One more thing: We recommend additional protection against natural hazards, such as floods, landslides, or lightning which in most cases you can easily add to your existing contents or homeowners policy. 

#4 Travel health insurance abroad (“Auslandsreisekrankenversicherung”)

Is the expression ‘wanderlust’ a frequent staple of your vocabulary? Does your new European residence  give you the perfect excuse to discover all of the neighboring countries? If you answered “yes”, you should probably think about getting additional health insurance for when you’re traveling outside of Germany. These policies are very affordable – according to the German finance magazine, Finanztip, you can buy them for less than 10 Euros a year. 

If you get sick abroad or need medical care, this insurance will cover the costs. However, since the pandemic’s not completely behind us yet, you should make sure Covid coverage while abroad is included as well.

#5 Disability insurance (“Berufsunfähigkeitsversicherung”)

Essentially, this insurance covers you for cases in which, for health reasons, you can no longer work. In these circumstances, the German welfare state will step in, but in most cases their monthly payments (also called “Erwerbsminderungsrente”) aren’t enough to make ends meet. So, disability insurance can serve as an additional security.

However, if you’re considering this coverage, be sure to read up on the subject – for example, if you belong to the group of civil servants, disability insurance may not be the right choice for you. 

#6 Term life insurance (“Risikolebensversicherung”)

This insurance gives your family (or others you’ve chosen) financial support , in the event of your passing. 

Life insurance makes sense if you are your family’s main breadwinner and they would significantly struggle making ends meet without your financial support. For example, if your better half is left behind, and still has to pay off a big mortgage, as well as support your kids, the insurance would help provide for them.

If you are single and no one is financially dependent on you, getting life insurance might not make much sense for you.

When should you think twice about insurance?

As mentioned above, you can definitely skip any insurance for damages you could easily pay for yourself. 

According to the German consumer protection association, Verbraucherzentrale, electronics insurance (“Geräteversicherung”), for your laptop, eyeglasses, and cell phone, are usually considered unnecessary. Like we’ve mentioned  above, even if it’s really tough if your phone becomes unusable, it usually doesn’t mean complete financial misery for you.

In addition, certain damage to your electronic devices might already be covered under your existing contents insurance, or by your manufacturer’s warranty or guarantee. However, this depends on each individual case and separate electronics insurance might make sense if you’ve got a very expensive and/or new device. 

Another insurance that often pops up in the context of ‘useless insurances’ is glass breakage insurance. Certain glass elements, like your TV table, may already be covered under your content’s policy, as long as damage to it was caused by an insured event. German non-profit consumer organization, Stiftung Warentest, also comments on the subject of glass breakage: “Only if your home has many glass surfaces, for instance, or if you have a  winter garden, maybe then you should consider separate glass breakage protection.” 

Last but not least, you can go ahead and skip luggage insurance (“Reisegepäckversicherung”) and passenger accident insurance (“Insassenunfallversicherung’”. The latter’s coverage largely overlaps with your car insurance.  

Before we go

We hope our overview has been helpful in the pursuit of the perfect German insurance coverage. However, we would like to emphasize that you shouldn’t  just rely on the ‘one-size-fits-all’ principle. Instead, it’s worth exploring which insurances fit your individual (expat) needs and lifestyle.

The post Which insurance policies do expats need in Germany? appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

The good news is, you’re not alone. Berlin has a huge foreign population consisting of 170 different nationalities, and a whole 20 % of its population was born outside of Germany, according to the Berlin-Brandenburg office of statistics.

And most importantly, we’re here to help you out. 

These are the topics we’ll be covering:

• Where in Berlin should you look for an apartment?
• Practical tips for finding an apartment in Berlin
• Everything you need to bring to an apartment viewing 
• Some additional facts about renting an apartment in Germany

Where in Berlin should you look for an apartment?

If you’re expecting a one-size-fits-all answer, sorry to disappoint. However, we can definitely offer you a guide: Together we’ll review the most important criteria to help you decide on a ‘Kiez’ (aka city neighborhood in Berlin)—including access to public transport, number of applicants per flat, and crime rate. Let’s go!

Public transport to the city center

Here’s the insider secret: Your new apartment should be located inside the ‘S-Bahn Ring’, meaning it should be accessible by tram. Spoiler: If you’ve arrived in places called Spandau, Koepenick or Marzahn, you’ve veered too far from the city center.

If you’re considering living in an apartment that isn’t located in the heart of Berlin, you should at least make sure that it’s got an accessible tram line that can get you there. Let’s be honest—you won’t want to spend 90 minutes on  public transportation just to be able to enjoy a glass of wine in Berlin Mitte.

Number of applicants per apartment

Want to know about the hottest neighborhoods? Just go with the areas people won’t stop talking about, like: Friedrichshain, Kreuzberg or Neukölln, which are high up there on the coolness factor.

Btw,  in 2021 Berlin Neukölln was ranked the 11th hottest neighborhood in the world by Timeout Magazine. 

However, one downside to their popularity is that the hottest neighborhoods tend to attract the most applicants. A popular neighborhood means less of a chance to secure yourself a place to live. 

Immobilienscout24.de, the largest German online marketplace for real estate, analyzed the number of candidates per apartment in a particular Berlin neighborhood in 2017–2018. They found that 836 (!) candidates applied for a 54 square meter (approximately 580 square feet) rental in Neukölln . Demand in Kreuzberg and Friendrichhain appeared to be similar, with an average of 635 and 595 applicants per apartment, respectively. In contrast, apartments in Wartenberg received the least applications (17 applicants per flat). 

Take a look at the full (German) list here. 

Crime rate

Berlin’s not Capetown or Acapulco, but there are still a few Berlin neighborhoods best avoided when strolling around alone at night. According to the Berlin police, you should be cautious around these places:

• Alexanderplatz
• Görlitzer Park/Wrangelkiez
• Hermannplatz/Donaukiez
• Hermannstraße/Bahnhof Neukölln
• Kottbusser Tor
• Rigaer Straße
• Warschauer Brücke

Rent

Last but not least, one of the most important aspects when looking for an apartment: Money.

Ok, rent is a tiny bit more complicated. But don’t worry, we’ll get down to it. 

In Germany, two different types of rent exist: ‘Warmmiete’ (warm rent) and ‘Kaltmiete’ (cold rent). The former includes additional expenses such as electricity and water costs, whereas for the latter, amenities are excluded.

Now that we’ve explained some basics—what’s a fair amount of money to pay for a rental apartment in Berlin?

Our answer: Check out the current ’Mietspiegel’ (Rent Mirror). The resource provides you with information regarding average local rent (beware: Kaltmiete) in certain neighborhoods. According to the Mietspiegel, the current average rent in Berlin is 23,39 € per square meter ( 10 square feet). 

At the low end, it starts from about 12 € per square meter in a neighborhood called ‘Waidmannslust’, all the way up to 43,09 € per square meter in ‘Oberschöneweide’. 

FYI, Berlin rent has increased around 39 % over the last 2 years! According to the Mietspiegel, the average local rent in 2020 was only 16,80 € per square meter!

And now that you’ve (hopefully) narrowed it down to a few Berlin neighborhoods, you might want to live in, let the actual apartment hunt begin. We’re kicking it off with some hands-on tips.

Practical tips for finding an apartment in Berlin

1. Be the early bird

As you probably know by now, Germans love being organized and planning ahead! The same applies to renting out their apartments. This means that you should start looking for a new apartment earlier rather than later. But what’s considered early? 

Usually, once you’ve made up your mind, you’ll have to give your (former) landlord a 3 month notice before you plan to move out. So, you should start looking for your next Berlin apartment roughly 3 months in advance.

2. Involve friends and acquaintances in the apartment hunt

German language nerd alert: In German,  getting help from someone you know is called using ‘Vitamin B’—where B stands for ‘Beziehungen’ (relationships). 

What does this mean? There’s always your one friend who’s roommates with this guy who might have heard of a great new apartment listing. An additional plus to this method: Potential landlords might be more likely to consider your application if it comes with a recommendation from someone they actually know—especially when it comes to expats.

3. Use your digital network such as Facebook groups

If you’re brand new in the German capital and don’t have any friends or acquaintances to help you find a suitable apartment, don’t worry. There are tons of Facebook groups you can join for that purpose. Some great examples include: Freie Wohnung / WG in Berlin  (if you already speak some German) or groups for expats such as Berlin Apartments – Rent – Share & Sell flats & apartments in Berlin & apartments in Berlin , or more general ones such as +Expats in Berlin+. 

4. Make use of online marketplaces

You might have heard of them by now, but the most known German portals for your apartment hunt include: Immoscout 24, Immowelt, and Immonet. 

For Immoscout 24, it might be worth getting their subscription called ‘Mieterplus+’. It will allow you to gain an insight into all kinds of statistics as well as have your messages appear first in your potential landlord’s postbox. Nice bonus: With the premium account, you’ll be able to send in all of the needed docs in a super organized way (and make all the Germans very happy!). 

In addition, you should set up alerts for all of these marketplaces—so you can react straight away if you see a new listing pop up on your phone. Time’s money when it comes to any apartment hunt—but even more so for Berlin’s highly competitive housing market.

5. Check out some alternative channels

If you’re currently a student, your university might offer an updates board where people offer their services, or alternatively, advertise their apartments. Also, the university itself might have counselors who can support you in the process of finding an apartment.

In addition to that, make sure you visit the classified ads plattform Ebay-Kleinanzeigen—you can literally find anything and everything there—including moving boxes and second hand furniture. 

If you’re looking for a shared flat with roommates (called WG, or Wohngemeinschaft in German), we’d recommend you check out the website WG-gesucht to find your perfect flat match. 

6. Get a realtor?

Also, if you’re becoming more German by the day, have planned ahead, and put some cash aside, it might be useful to involve a real estate agent—especially if your German’s not fluent yet. The upside: You’ll only have to pay the agent’s commission once they have found an apartment for you. Also, their commission shouldn’t exceed two month’s rent plus VAT. Don’t let anyone fool you here.

So, you’ve finally been invited to the long-awaited apartment viewing. Your next question’s probably what you’ll need to bring with you. We’ve got the answer.

Everything you need to bring to an apartment viewing

Make sure to bring all of the following items:

1. Schufa-Auskunft. This is basically like a credit report. It shows your landlord that you’ll be able to pay your rent every month. However, if you’ve just moved to Germany, this document might be blank. If this is the case, make sure to bring an alternate document that shows that you have sufficient funds, like a work contract or your tax returns. 

2. Your last three payslips. If you’re a freelancer, bring a statement of income from a tax advisor instead. Just so you know, in Germany, roughly one third of your salary should be budgeted for your monthly rent. 

3. Mietschuldenfreiheitsbescheinigung. Quite high up on the list of longest German expressions ever, but what does it mean? This document confirms that you’ve always paid your rent and don’t owe your previous landlord any money (Here’s a template).

4. Your ID—plus a copy of your ID. 

5. Bonus: Proof of your personal liability and contents insurance. Contents and liability insurance (which taken together are quite similar to US renters insurance) aren’t mandatory in Germany.  Nevertheless, landlords might ask you for proof of both personal liability (“Privathaftpflichtversicherung”)  and contents insurance (“Hausratversicherung”). According to the German Tenants’ Association (“Deutscher Mieterbund”) this request isn’t legally valid. However, reality looks slightly different. As you know by now, there’s lots of competition when it comes to affordable housing in Germany. Therefore, you should give yourself a head start, and consider getting yourself both insurances. 

Here’s what they cover:

• Personal liability insurance. This insurance covers you if you accidentally injure others or cause damage to their stuff—including your rental apartment. No wonder landlords really want you to get this insurance.
• Contents insurance. Your contents policy protects your stuff, more specifically everything you’d take with you if you were to move, from damages caused by things like fire, tap water, or a burglary.

Some additional facts about renting an apartment in Germany

Calculating German apartment sizes

For German apartments, everything (also the living room) counts as a room (‘Zimmer’). 

If you’d like to live in a 1-bedroom apartment, you’ll have to look for a ‘Zweizimmerwohnung’ (2-room apartment).

Unfurnished versus furnished apartments

Most German rental apartments are rented out unfurnished, meaning they might not even include a fully-equipped kitchen. So, if you don’t own any furniture and prefer not to buy any either, you might want to consider living in a sublet, short-term apartment such as Airbnb, or in a shared apartment that comes with some basic equipment. Alternatively, you can filter the apartment ads  to include a so-called ‘EBK’ (Einbauküche),  so you can expect a fitted kitchen to come with your apartment.

German rent deposit

The rent deposit (‘Kaution’) serves as a security for your landlord, and can be used in case you accidentally damage the apartment furniture, fail to settle outstanding bills, or simply haven’t paid up on time. The maximum amount your landlord can ask for in a security deposit is three months of rent (‘Kaltmiete’). 

Btw, if your landlord refuses to pay back your deposit after you move out, check out these tips to help you get your well-deserved money back.

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We really hope our tips were helpful! If the apartment hunting process takes a bit longer than you expected—don’t give up. In the end, finding a new home for yourself in Berlin will definitely be worth the wait!

The post Practical tips for finding an apartment in Berlin appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

So, what can you do to get your money back? A sit-in strike? A doorbell prank at your landlord’s mansion? Or maybe just a simple heart-felt one-on-one with the guy? 

We’ve got a few (better) ideas that could help get you out of this tricky situation (with your money in hand.)

Let’s get started.

What’s a security deposit, and what is it used for in Germany?

A security deposit, also called a rent deposit (‘Mietkaution’), is a sum of money that you have to provide to your landlord before you move into a new apartment. It serves as a protective measure in case tenants cause damage to the apartment or don’t pay their rent. So, if you spill wine on your landlord’s carpet, or don’t pay all your bills on time, they can make use of the money.

BTW, the maximum amount your landlord can ask you to pay is equivalent to three months of rent (aka ‘Kaltmiete’, rent excluding utility costs). Sounds like a lot, doesn’t it? If you’re short on cash, you’ve got the option to split your rental deposit payment into three separate installments. Contrary to popular belief, the first payment is only due at the beginning of your tenancy, and not immediately after you sign on the dotted line.

FYI: Your landlord needs to ensure your deposit money —usually in the form of  bank transfer or cash—is moved to a bank account that is separate from his account. In addition, the account needs to be ‘insolvency-proof’. That way, you can rest assured that your money is still there should your landlord’s financial situation go down the drain.

As an additional precaution, The German Tenants’ Association (‘Deutscher Mieterbund’) advises you to ask for a receipt from your landlord proving that they have actually received your rent deposit.

When can you expect to get your deposit back?

First things first: You can only expect to see your deposit again if you’ve always paid your rent on time, don’t owe any additional money to your landlord, and have left the rental apartment in good condition when moving out.

If one of these conditions isn’t met, your chances of getting your full deposit back are pretty slim. But let’s assume that you’ve met all the criteria. 

So, when do you actually get your money back?

 You may think your deposit will accompany you to your new place, along with your packed boxes. Unfortunately, we’ll have to disappoint you here. Only very rarely will you get your deposit back once you return the keys to your old rental. In reality, you’ll need to give your landlord some time to decide if you should, in fact, get it back. . 

Your ex-landlord will walk through the apartment to check if you’ve left everything in the state agreed upon in your lease. Also, they’ll want to make sure all your money is paid. 

You’ll probably have to be patient— but not for too long. As a rule of thumb, you can usually expect your rent deposit back within three to six months after the rental contract ends. 

FYI,  After three years, your claim to your security deposit expires.

Ok, now that we’ve defined what a deposit is and when your landlord should pay it back to you, let’s take a closer look at some reasons your landlord might decide to keep your deposit.

When your landlord won’t return your deposit

1. You still owe rent.

The first day of the month has long passed, and you still haven’t transferred your rent payment. A quick glance at your current balance tells you why: you’re kinda broke. It doesn’t come as a complete surprise, but your landlord isn’t thrilled. 

Being late on your rent can happen to anyone, but it does come with some unpleasant consequences. If at the end of your lease there’s an outstanding debt, your landlord can use parts of your deposit to cover what you owe, until you pay up. BTW, if you fail to pay your rent for two months consecutively, your lease can be terminated without notice. This only applies if what you owe amounts to more than one month’s rent, according to news site ‘Redaktionsnetzwerk Deutschland’.

2. The last utility bill hasn’t come in yet.

If the public utility company (‘Stadtwerke’) hasn’t sent out the latest bill yet, your landlord knows that you’ll likely still have to pay to cover some utilities. If this is the case, they can withhold a portion of your deposit until they see that you won’t need to pay or that you’re caught up with your bills. However, your landlord might only receive the last bill at the end of the year. In this case, they likely won’t give back your deposit within the expected time frame of 3-6 months.

3. You’ve caused some damage to the rental, which you haven’t fixed. 

Imagine this: You’re moving your vintage shelves out of your bedroom and into the living room, but you underestimate its size. Crap! You’ve banged it right into the door frame, causing some noticeable damage.

Luckily, if you  have personal liability insurance, you’ve got nothing to worry about. Whether you’ve accidentally broken the landlord’s fancy bath tub or spilled your favorite Malbec on their carpet, damages to your rental property (‘Mietsachschäden’) are usually covered by your liability insurer (assuming you didn’t cause the damage on purpose).

If you accidentally cause damage to your landlord’s property while moving out, you or your insurer will have to pay for it. This also applies if your key is lost or stolen during your move. One again, your liability insurer should have your back. They will cover the costs to replace the key and the respective locks. Once you’re even, your landlord should immediately return your security deposit in full. If you don’t have personal liability insurance, or don’t pay up, they can keep a portion of your security deposit to pay for the damages themselves.

BTW, normal wear and tear, such as stains on the walls where you hung your framed prints, or signs of use in your kitchen sink fall under your landlord’s responsibility, not yours or your insurer’s. Be aware that some landlords will try to make you pay nonetheless—don’t let them rip you off.

4. You’ve skipped the necessary cosmetic repairs or basic cleaning before moving out.

It’s very likely that your rental agreement includes a paragraph about the exact state the rental needs to be in when you move out. In this paragraph, you’ll likely be asked to paint the apartment before you leave. What happens if you move out without painting? In that case, your ex-landlord can hire someone to paint the apartment —and use your rent deposit to pay the bill! Definitely something to keep in mind. However, your landlord cannot expect more than a standard paint job, which requires some white paint, a patch-up of holes you’ve drilled, and the removal of any nails. Anyway, make sure your landlord doesn’t trick you into beautifying the apartment at your own expense.

The same rules apply if you decide to forego a proper cleaning before you move out of the apartment. In that case, your landlord is free to employ a cleaning service at your expense. 

As you’ve probably realized by now, transparency is everything. It’s crucial for you and your landlord to agree on the state the apartment should be in when you move out—even before you sign the lease. 

Once your move out date has arrived, take a last walk through the apartment with your landlord. Create a list of things that might need to get fixed. This is called a handover protocol (‘Übergabeprotokoll’). Just be aware that you’ll only record potential damages, and won’t sign anything that commits you to do the corresponding repairs. 

BTW, for your next apartment, you should do the same before your lease starts. If you record any prior damages, you can’t be held responsible for stuff that has fallen to pieces before your time living in the flat. 

Pro-tip: We recommend taking a good friend who’ll accompany you during the last walk through the apartment. They can oversee the process and if worse comes to worst, if you’re to be made responsible for damages that weren’t your fault, your friend can testify for you. Our apologies for our mistrust in landlords, some are probably real nice guys!

Ok, you’ve done everything in your power to get your security deposit back. What happens, if your landlord still refuses to pay up?

Tips to get your deposit back

Step #1

An honest conversation can definitely clear the air. Call your landlord or send a WhatsApp (depending on how you’ve communicated with them so far) to let them know that you’d like to talk. Maybe there has simply been a misunderstanding between the two of you, and the issue can be resolved quicker than you think. Not up to meeting up in person? Sometimes a quick phone will do the job.

Step #2

Okay. Unfortunately, there hasn’t been a misunderstanding between the two of you, and your issue isn’t that easy to resolve. If you still think you’re in the right, you can send your landlord a letter of demand, asking them to return your rent deposit. You can find a German template here. Make sure you send a registered letter including a return receipt, so you can see that they’ve received your message.

Make sure the letter mentions that you’ll take legal action if you don’t get the deposit back within a reasonable period of time (usually of 2-4 weeks). You should also ask for a clarification as to why your landlord is holding onto your money in the first place.

Step #3

If you’ve reached your wit’s end, it might make sense to contact the German Tenants Association (‘Mieterbund’). They can give you valuable advice, and you can decide together whether you should involve a lawyer who’s specializes in tenancy law.

If you’re lucky, you might already have legal protection insurance (including a specific legal protection for tenants), and check in with your insurer. As you can imagine, initiating legal proceedings can get pretty expensive, especially if you’re not insured.

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We hope you’ve found this article helpful in your quest to get your security deposit back. If you have any additional questions regarding renters’ rights, take a look at this article.

The post Your landlord is refusing to pay back your security deposit? Here’s what you can do. appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

When you get home that evening, your apartment lights are switched on. You grab your phone, ready to dial 911 i…until you notice your landlord’s parked car. He’s made use of your spare key, and is now busy fixing your leaky sink. 

You’re relieved—no burglars, no dreadful visit from your ex who kept a copy of your apartment keys. But wait a sec, are landlords even allowed to enter your apartment if you’re not home? 

Good question. In Germany, several rules and laws exist that protect tenants. But many of us aren’t 100% sure as to when exactly they apply and in which scenarios they… simply don’t.

That’s where we come in—to shed some light on your most pressing questions on German renters’ rights.

• What are your rights as a tenant?
• What are your obligations as a tenant?
• When is your landlord allowed to terminate your lease?

What are your rights as a tenant?

Let’s dive deep into your usual rights as a tenant. However, always make sure to properly consider your individual case, including all its background info (plus, we’re insurers—not lawyers). 

Disclaimer: Some of the sources we’re linking out to are only available in German. However, try using the Google translate app for an instant translation.

1. The right to live in a habitable apartment

First and foremost, landlords are legally required to provide you with an apartment that you can live in comfortably. In exchange for  your monthly rent, you can expect your apartment to be kept in good shape. Landlords have to ensure that your heating works, that the reel of your balcony is safe, and that rainwater can’t leak through your windows. 

In case some equipment or appliances that came with the apartment are damaged or stop working ( due to wear and tear, for example), your landlord has to step in. If you can’t open the door to your shower because of a broken hinge, your landlord has to take care of it, or get in touch with someone who can. The same applies to broken appliances, such as your dishwasher or washing machine. If one of them stops working for no apparent reason, it’s not usually your obligation to pay for the repair—if you didn’t damage the item yourself, that is. Generally,  it might be good to double-check the lease, though. Some contracts will specify that you have to pay for minor damages (up to €100) yourself (Kleinreparaturklausel).

Listen up: In case some of your stuff gets damaged, by a water leak from a broken pipe, for example (we hope that’ll never happen!), your contents insurance will have your back.

2. The right to pay less rent

Don’t get your hopes up—this only applies when you cannot use your apartment space in a way that has been agreed upon in your contract. Examples would be if  the apartment right above yours goes through some spontaneous (and very noisy) renovations, or if your bedroom gets infested with mold due to some structural defects in your building. If this is the case, it’s up to you to take initiative and get in touch with your landlord ASAP. As you can imagine, you’ll need to do it the proper German way, and file an official notice of defect. 

According to the German Tenants’ Association (Deutscher Mieterbund), you can expect a rent reduction during the period in which you cannot live in e your apartment (if you did not cause the damages yourself, that is).

Here’s an overview of how this could look. Of course, each situation is different, so be sure to take your individual case into account.

3. Tenant’s rights around your deposit

Handing over a deposit to your landlord sounds like an obligation rather than a right. However, you should know that you don’t have to pay three months’ rent in one go. You’re allowed to split your deposit into three equal monthly payments. In addition, you’ll only have to hand over your deposit once your lease starts, and not right after signing the contract with your landlord.

Good to know: Your landlord has to put the money that he’s received from you (usually by bank transfer or cash) into a separate bank account and can’t just cash it . The German Tenants’ Association advises you to make sure you receive a receipt of your payment from your landlord. This way, it’s easier to get the deposit back once your lease ends. 

Which brings us to the next point: What happens to your deposit once you move out? You can expect to get your money back within three to six months—given that you’ve always paid your rent on time, don’t owe your landlord money, and that you’ve left the apartment in good condition. BTW, if this isn’t the case—for example, if you have accidentally damaged your door frame while moving out, or lost the apartment keys, your liability insurance might have your back. Once your insurer pays for the damage, your landlord will probably call it even, and give you back your deposit.

However, what happens, if your landlord refuses to give back your deposit, even though you’ve fulfilled your part of the deal? Your contents and liability insurer, like Lemonade, won’t be able to help you out here. The same applies to any general issues with your landlord (e.g. if he refuses fixing your heating). You can either get in touch with the German Tenants’ Association or alternatively get yourself some German legal insurance. Talk to your insurer beforehand, and take a close look at the insurance policy to make sure you understand all coverages.

4. The right to furnish and decorate your apartment any way you please

Do you feel like plastering your walls with your own art to turn your rental into your real home? Go for it. According to Immowelt, it’s your right to paint your walls and put up some hooks to hang up pictures. Just remember that you’ll have to reverse all changes you’ve made to the apartment once you leave.

5. The right to choose your visitors

No one can tell you who you can and can’t welcome into your home. As long as all of you respect the building’s rules (more on that later), you can choose to chill in your place with whomever you please.

Are you thinking of moving in with your significant other and believe that your place would be just perfect for the two of you? Deal. Your landlord has to allow your partner to move in.

If you want to sublet your apartment, it shouldn’t be a problem if your landlord agrees to it. Be sure you’ll discuss it with them before the three exchange students you met at the last bar crawl move in.

6. The right to keep pets

Good news for your hamster, Rudi. He’s allowed to cohabitate with you. The same applies to any kinds of small pets such as budgies and rabbits. According to decisions of the Federal Court of Justice (Bundesgerichtshof), you’re allowed to keep small pets in your apartment. Your landlord won’t be able to object—given that they aren’t too noisy. But what happens if your (small) pet causes damages to your rental? This is usually covered by your personal liability insurance (also by Lemonade’s liability insurance!).

BTW, landlords cannot forbid you from keeping dogs or cats in your rental flat. They can only refuse to allow your furry friend to move in if there’s a good reason for it. If there happens to be a paragraph in your lease that’s about how pets aren’t allowed in your flat at all, it’s basically not valid. 

Give your rental contract a proper read and talk to your landlord to get everything sorted beforehand—especially, if you’re already a proud pet parent, or if you’re thinking of adopting a furry addition to your family.

7. ”Hausrecht” (unfortunately, there’s no real English equivalent, let’s call it ‘right to private space’)

Landlords aren’t allowed to enter your apartment whenever they please—after all, it’s your private space. They are only allowed to enter your home if you’ve agreed to it. Back to the beginning of the post—your landlord’s nighttime fixing session is in violation of your rights as a renter. Even if your landlord has good intentions, they have to respect your privacy.

8. The right to stay or leave (Should I stay or should I go…?!)

In most cases, German rental contracts have no set end date. They basically don’t expire, and are formulated in a way that protects the tenant from being kicked out at random (woohoo!!). So, in theory, that means you can basically stay in your rental as long as you please (if you respect your obligations, of course.)  If you change your mind and decide to move out, you can leave without disclosing  your reasons for leaving to your landlord. You’ll simply have to give your three-months notice—and vacate the flat as agreed upon in the contract.

On the other hand, your landlord will need to come up with a convincing reason to make you move out. More on that later.

Now that we’ve revisited all your rights as a renter, let’s take a look at your obligations.

What are your obligations as a tenant?

Not only landlords have to fulfill their obligations, also as a renter you have certain duties to your landlord.

A quick overview of the typical tenant obligations:

• Pay rent

Starting with the obvious—you’ll have to always pay your rent, and pay it on time— at the beginning of the month. If you don’t, according to the German Civil Code (Bürgerliches Gesetzbuch) your lease gets terminated immediately.

• Comply with your lease’s terms and conditions 

It’s best if you just grab the lease  and read it once from beginning to end. Ask, ask, ask if anything’s not clear to you—do this before you sign on the dotted line.

• Comply with the building rules

If you live in a building with several rental apartments, you’ll have to follow building rules. For example, they might have rules around noise (Ruhezeiten), how to throw away your trash, or if you need to do your part to help clean the stairwell. 

• Heat up your apartment

This sounds a bit strange—but you have to heat your apartment during winter. If you don’t turn on your heat, it can cause mold and burst pipes. 

Good to know: You’re also responsible for opening windows and airing out your space, so humidity can’t build up.

• Tell your landlord ASAP if you detect any damages or deficiencies

Did you spot some rainwater seeping through your windows? Not great. Tell your landlord immediately. If you don’t, and humidity or water cause damage to your home, you might have to pay for it yourself. 

If you accidentally cause damage to your rental apartment (called ‘Mietsachschaden’), your private liability insurance will likely have you covered. For example, Lemonade covers damage to furnishings and permanent fixtures like sinks and the parquet floor, as well as damages to any impacted neighbors, or third parties. However, this doesn’t apply to glass breakage or damage to your rental due to wear and tear—those things won’t be covered.

• Agree to show your rental to interested parties

If your landlord wants to sell your apartment, you’ll have to set one afternoon a week during which he’ll be allowed to show it. This might go without saying, but they have to agree on a suitable time with you beforehand (and can’t just show up unannounced).

• Do some basic renovations before moving out

Don’t let your landlord talk you into anything that you’re not technically obliged to do. Cosmetic renovations like a simple paint jobs might be your responsibility. Though, doing work to ‘beautify’ the rental does not fall under your obligations.

When is your landlord allowed to terminate your lease?

As mentioned above, one of the (not very surprising) reasons your landlord can terminate your lease is if you decide to stop paying rent. However, there’s another reason your landlord can ask you to move out: if they or their close relatives want to live in the apartment.

Eigenbedarf, or the fancy German term describing this situation. Your landlord will have to send you a formal termination letter. Usually, they will have to keep a three-month notice period. However, if you’ve lived in your apartment for more than five years, the notice period extends to six months. 

What happens if the apartment is sold to a third party?

The time has come, your landlord has sold your beloved home to someone else. But what does this mean for you?

Interestingly enough, if ownership of your rental changes, your lease isn’t terminated automatically. How come? Well, the renters’ section of the German Civil Code states something along the lines of ‘purchase doesn’t terminate rent.’ 

Also, your ‘new landlord’ cannot raise your rent automatically. Increasing the monthly rent is only allowed if it was too low to begin with, and needs to be raised to match the local standard (check here if your rent’s adequate.) Another reason to raise the rent is if the apartment underwent some major renovations, such as the installment of a (shiny) new kitchen during the change in ownership. In this case, the new owner might be able to ask for a higher rent. 

But as expected, there’s a loophole—if the new owner wants to live in the apartment themselves, you’ll have to vacate.

What can you do in case your landlord only pretends that he wants to live in your place?

Your landlord might tell you to move out because of ‘Eigenbedarf’, but in fact they simply want to get rid of you (to find a different tenant).

If you want to continue living there, you’ll have to prove that your landlord’s faking it. You’ll have to file a written objection letter (remember, that’s how the Germans like doing things). If you happen to see your apartment listing online, such as on ‘Immoscout’ and Co., that’s usually sufficient evidence to show they’re bluffing. 

In such a case, your landlord’s claim isn’t valid, and they might have to pay you for damages. 

Before you go

Whether you’re moving into a new flat, or already living in the same den for years, it’s important to understand your rights as a tenant. We hope that this has helped you understand the topic of renters’ rights better. Worse comes to worst, that you’ll be able to use your knowledge. 

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If you still have questions about tenants’ rights, or if you have a specific concern about your rental apartment, contact the tenancy law advice service in your federal state. 

Disclaimer: You might have to pay for these services yourself.

The post What you need to know about German renters’ rights appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

We’re here to dive deeper; to give you uncomplicated explanations and practical examples of insurance deductibles.

Buckle up, because here it comes, our answers to the most frequently asked questions on deductibles:

1. What’s an insurance deductible?

2. How do insurance deductibles work?

3. Why do insurance companies have deductibles?

4. How do I adjust my deductible?

Let’s get started!

What is an insurance deductible?

“An insurance deductible is an amount of money you choose when purchasing a policy that will be subtracted from any future claims payouts.”

Let’s assume that someone has stolen your €800 iPhone in a burglary, and your deductible is €300. In this case, your contents insurance would pay you €500.

Think of a deductible as your participation in the damage or loss. You’re saying, “I commit X euros to any claim on future losses or damages, and my insurance company pays the rest.”

It probably sounds a little weird that you have to pay a monthly premium and, on top of that, you won’t get the full value of your stuff in return when things go sideways. But don’t worry, we’ll dig into why that is a bit later. It’ll all make sense, we promise!

Good to know: Usually, your deductible is a fixed euro amount, although some companies offer it as a percentage of your sum insured.

How do insurance deductibles work?

When signing up for a contents or liability insurance policy, you can decide if you want to choose a deductible… or not.

What you’re choosing here is your participation, or the amount subtracted from a claim, in the event that a) something happens to your belongings (contents insurance), or b) if you hurt someone or cause damage to their belongings (private liability insurance). 

Here are a few examples:

Scenario A:

1. You chose a deductible of €150 when you purchased your policy.

2. Later on, you file a claim for a €700 TV that was stolen during a burglary.

3. If the claim is approved, your insurer will pay €550 (€700 minus your €150 deductible).

In the case of contents insurance, the deductible you choose should correspond to the total value of your belongings. If you don’t own any expensive stuff, it might be smart to choose none or a rather low deductible. If the total loss is less than your deductible, there’s no point in filing a claim – the insurer won’t reimburse you for anything.

Scenario B:

1. You chose a deductible of €150 when you purchased your contents policy

2. Your €100 headphones fall in the toilet (we hope this never happens!).

3. Since the headphone’s replacement value is lower than your deductible, you won’t get anything from your insurer on this one.

So, now you’re probably wondering… why doesn’t everyone just choose a low deductible or no deductible at all to make sure that if your stuff damaged or goes missing, it’ll be covered in full?

Good question 🙂

In general, the lower the deductible you choose, the higher your monthly insurance rate will be. Conversely, if you choose a high deductible, your insurance rate will be lower.

Stay tuned – in the next paragraph we’ll explain the role deductibles play for insurance companies.

Why do insurance companies have deductibles?

1. Cautious policyholder behavior

If you’re responsible for participating in a future claim, you’re more likely to be a bit more careful when it comes to your things, and you’re also less likely to behave in a risky manner in general. In addition, you’ll file fewer claims overall, since the value will  have to exceed a certain amount, meaning you’ll take full responsibility for smaller claims, which brings us directly to the next point: 

2. Lower workload for the insurance company

Consider this: how many claims would insurers have to handle if they responded to every single claim, no matter how small? Think for instance of scratched sunglasses, lost scarves, etc. That’s a lot of insurance claims to manage.

The cost associated with these types of claims is enormous. Insurers would have to spend the same amount of time checking a claim for 5 euros as for one for 5,000 euros.  

So, if insurers took on every €5 claim that came their way, they’d be stretched too thin. In some cases, the money it would cost to settle the claim would be more than the actual claim amount (Say what?!).

Let’s think about this a little further. If this were really the case, insurance companies would have to hire significantly more staff or develop even better technology to handle the workload. This investment would have to be financed somehow, and would come at the expense of affordable insurance premiums. 

3. Lower risk of termination

The thing is, if you file too many claims and get reimbursed, you cost the insurance company a lot of money. Consequently, they can terminate your insurance contract, meaning you’d have to go and find a new insurer. Usually, when you purchase a policy, you’re asked for your “claims history”, which is the number of claims you’ve filed so far.  If the number is too high, no insurer will take you on as a client. 

Bottom line – with a higher deductible, the fewer claims you file, thus reducing the risk of your insurer trying to get rid of you.

In summary: Insurance companies use deductibles to reduce the risk of claims, and to help keep premium costs at a minimum for all policyholders. But of course, you have to decide for yourself whether a deductible makes sense for you personally and if it fits your individual needs. 

At Lemonade, things work a bit differently

Many people experience anxiety before filing a claim, and in many cases, they just give up altogether. And who can blame them?

Often, the stuff we’d like to claim is below the deductible we originally chose, which means that filing a claim wouldn’t make any sense. In other cases, people may be tempted to embellish claims to get them above their deductible amount, and that’s not great either.

Filing claims should be a pleasant and reassuring experience. After all, claims are the reason why we all get insurance in the first place.

If you don’t remember which deductible you selected, simply check out your policy.

If you’re insured with Lemonade, just open your app (available for iOS & Android) and check your deductible there. By the way, with Lemonade you can choose a deductible between €0 (no minimum deductible!) and €500. 

In case you want to change your deductible:

1. Click on the policy whose deductible you want to adjust and select “Edit” on the home screen of the app (right next to “Overview”). 

2. Scroll down to the “Deductible” section and change it with just a few taps, choosing one of the four options that suits you best.

3. Voilá! The whole process only takes a few seconds, and you’ll receive an email confirmation with your updated policy right away 🙂 

Fun fact: You can adjust your deductible in the app without clicking on “Update Policy” to see how a different deductible might affect your monthly premium.

Key Takeaways

1. A deductible is an amount of money you choose when purchasing a policy that will be subtracted from any future claims payouts.

2. In general, a lower deductible means a higher premium, and vice versa.

3. Deductibles exist to make you be a bit more careful with your stuff and to keep the cost of policies low for everyone.

The post The Lowdown on Insurance Deductibles appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

During lunch, you look forward to going through all the shots on your DSLR camera. As you set down your sandwich and reach for the camera, it’s… not there. It’s in that moment that you realize someone must have snatched it while you weren’t paying attention. Oh no. 

It’s bad enough that all of your photos are lost, but the cost of replacing your Canon  will definitely put all of your future hiking trips on hold. 

But there are ways to avoid paying out of pocket for your stolen camera. Find out about the different options below.

Here’s a little preview of the topics we’ll be covering: 

1. Is damage to your camera covered by contents insurance? 

2. What does the distributor’s warranty & the  manufacturer’s warranty cover? 

3. So, what does camera insurance cover?

4. Is it worth it to get camera insurance?

5. Three photography influencers you should follow right now

Is damage to your camera covered by contents insurance?

Do you already have home contents insurance? If so, you’re one of the over 50 million Germans whose stuff is covered. Good for you! Since your camera is considered one of your belongings, it also falls under this coverage. 

In case you need a refresher, your insurance usually covers damage caused by the following: 

What does contents insurance not cover?

If you cause damage to your own belongings, it isn’t covered by contents insurance. This is called “first-party loss”. So, if you accidentally spill your latte on your camera, or drop it in a canyon when you try to capture that perfect shot – it’s not covered. 

Also, if you use your camera for business-related purposes, then damage probably isn’t covered by your insurance either. 

How much is the refund? 

Home contents insurance is a so-called replacement value insurance. That means, in the event of an accepted claim, you would be reimbursed for the replacement value, which is the amount the same camera would cost in the store if you were to buy it again today.

What if something happens to my camera when I’m away from home?

Another big advantage of house contents insurance is off-premises coverage.

Off-premises coverage is part of your home contents policy, and it covers your stuff if it’s stolen or damaged outside of your home. For example, if someone snatches your camera from your locked hotel room, you’d be covered. 

Worth noting: Off-premises coverage is usually limited to 10% of the total amount insured. So if you have 30,000 euro of coverage, the external insurance will only cover up to 3,000 euros.

What happens if someone steals your high-quality camera from inside your car? 

In most cases, electrical equipment, including cameras, aren’t included in car burglary coverage. However, it’s important to read the fine print of your insurance policy to really understand your coverage. 

The Lemonade Anti-Theft Package 

If you buy a Lemonade contents policy, you can easily add the Anti-Theft Package for a few additional euros a month. With this add-on, your belongings, including your camera, are protected against theft from anywhere in the world. If your claim gets approved, you’ll get reimbursed for up to the amount insured.

It makes no difference to Lemonade what type or how old your camera is when you apply for coverage. Your stuff is covered from theft from the moment you buy the package, and your stuff will even be covered for up to three months during international travel. BTW, with Lemonade you can choose a deductible from 0 to 300 euros. 

Apart from household insurance (with or without the Anti-Theft Package) – it’s worth checking if the camera company or distributors might cover damage to your favorite camera. More on this topic below…

What does the distributor’s warranty &  manufacturer’s warranty cover? 

Here’s the good news:  Because your digital camera is considered an electronic, it comes with a distributor’s warranty of 24 months. But what exactly does that mean? 

A distributor’s warranty generally covers production, material, and design defects.  But this warranty only applies if your camera was defective from the start. If you bought a defective item, the refund falls under the responsibility of the seller or distributor, like Media Markt or Amazon. You can contact the store and request a repair, or if it’s completely defective, you can request a new device entirely. 

Pretty straightforward, right? 

If it’s been less than six months since you bought the camera, you shouldn’t run into any problems with the distributor. After six months, however, you will be required to demonstrate that the camera was defective from the start, which could be tough to prove.  

What about the manufacturer’s warranty?

You usually get a manufacturer’s warranty on an item for either one or two years  – but the specific terms of the warranty are unique to the manufacturer.

 If something happens to your camera within the first one or two years after purchase (including any damage you may have caused yourself), you can contact the manufacturer. Rechargeable batteries are usually excluded from this warranty. 

That brings up to the question you’ve all been waiting for: 

So, what does camera insurance cover?

Here’s what’s covered by camera insurance: Your camera, portable video equipment (digicam and camcorder), and photography equipment, such as lenses, shutters, and tripods.

In addition to your personal cameras, coverage often includes cameras and photographic equipment used purely for business purposes. 

What type of damage is covered?

Usually, camera insurance covers your camera for the following:

• Drop and breakage-related damage
• Liquid and water damage
• Operating errors
• Short circuit, lightning strike, fire & overvoltage
• Construction defects
• Theft, burglary, and robbery (some providers require that the camera was stolen from a secure area for this coverage to apply).

With any insurance coverage, it’s important to check the terms and conditions of the policy to decide if the coverage makes sense for you. 

Find coverage that fits your lifestyle: If you spend a lot of time outdoors, it doesn’t make sense to choose insurance that doesn’t cover breakage.

Know when coverage starts: Check if there is a 4-week waiting period between buying the insurance and activating the coverage.

Good to know: Cameras older than 12 months don’t qualify for coverage from most insurers. 

Before we go any deeper, you should ask yourself the following questions: 

• How much did your camera cost? Would it be worth it for you to invest in insurance on a monthly basis to cover it? 
• If your camera was damaged or stolen, how devastating would replacing it be financially?

And now for the moment you’ve all been waiting for: 

Is it worth it to get camera insurance?

According to experts, if your camera isn’t  worth more than 500 euros, special camera insurance is probably not a savvy financial move for you. 

According to Chip, the insurance only becomes worth the cost when the value of the camera is over 1,000, if not 1,500 euros. Professional photographer David Köster agrees, saying that the insurance only really becomes necessary when the value of the camera plus the camera equipment is in the four-figure range. 

It’s not just the price off the shelf that counts, it’s also about how much gets reimbursed if you file a claim. When figuring out your coverage, make sure that you get back the replacement cost. With some insurance providers, after two years they will only reimburse the actual cash value. You can think of that as the Ebay price of your camera. 

As you may have guessed, the difference between replacement value and actual cash value can be pretty significant. 

And while you’re comparing policies and crunching the numbers, be sure to check if your insurance includes a deductible or not. 

Some professional advice: Photographer David Köster has found himself in a number of situations where camera insurance came in handy. If you’re a landscape photographer and spend time outdoors all year round, special insurance could end up saving you a lot of money in the long run. David is a landscape photographer, and dropping and damaging his camera in the great outdoors happens pretty often. (Check out David’s Instagram page, which is full of his stunning nature photography.)

Summary

If you have a very expensive camera and accessories that you often use outdoors, then special camera insurance might be worth it for you. Be aware of the limitations of camera insurance coverage and don’t be shy to discuss coverage directly with your insurance company if you have any questions. 

If you have a mid-priced camera, the coverage provided by the distributor’s and manufacturer’s warranty in addition to your contents insurance policy is probably enough. 

Lemonade doesn’t offer specialized camera insurance at this time, but if you’re looking for contents and anti-theft insurance, Lemonade has got your camera covered.

And here’s a bonus for making it all the way to the end of this article: Three photography influencers you should follow right now…

Max Münch: Max is one of Germany’s leading outdoor photographers, according to t3n. His weapon of choice for several years? The Canon EOS 5D Mark IV. 

Jörg Nicht: The Berlin-based photographer and Instagram influencer is particularly fond of street photography. 

Laura Zalenga: The portrait artist from southern Germany teaches hands-on workshops, if you’re looking to learn. 

The post Is Camera Insurance Worth It in Germany? appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

You look to the right, you look to the left. Nothing. And then the horrible realization sets in: Sneaky thieves stole your wheels. You find the shattered bits of your broken bike lock on the sidewalk.

Hey, shit happens. But this situation is especially crushing, because your bike is more than just a way of getting from point A to point B. And besides, that extra-light carbon road bike was not cheap.

But what does bicycle theft mean for your finances? Do you get reimbursed if you have existing insurance? Would you have needed to invest in a special bicycle insurance policy beforehand?

Let’s take a deep dive into bike insurance.

A quick topic overview:

• Which insurance covers my bike—is it covered under my contents policy?
• What the heck is a bicycle clause?
• Special bicycle insurance… a good idea, or a waste?
• Are e-bikes covered by insurance?
• The Lemonade Anti-Theft Package offers broad protection.

Which insurance covers my bike – is it covered by my contents policy?

If you already have German contents insurance, then your bike is covered as part of your belongings. 

Quick refresher: Home contents insurance protects your belongings against damage caused by fire, smoke, explosion, storm, hail, tap water (from burst pipes & leaking appliances), robbery, and vandalism. 

So if your bike is damaged by a fire in your home, insurance will step in and cover you. Plus, you’re additionally protected against burglary. If someone breaks into your locked bike cellar (with visible signs of burglary!) and takes your wheels, you’ll be compensated. 

Listen up, though…there’s a few things to consider when dealing with simple contents  insurance: 

• Amount refunded: Usually what you get back in case of damage/loss is the replacement value that it would cost to buy a new bike that’s equivalent to the one that was stolen or damaged.
• Limited theft protection: If your bike is not in your apartment, basement, garden shed, etc., but is instead chained in front of your favorite café or at your university…household insurance won’t cover you if it gets stolen. Luckily there are other ways to protect your two-wheeled treasure. Learn more below.

What the heck is a bicycle clause?

Generally, a bicycle clause means that some content insurances automatically include basic bicycle theft protection as part of their policy. That’s great news if you live in Münster, Magdeburg, Lübeck, or Bremen—all on the list of the top 10 cities with the highest risk of theft, according to the Rheinische Post. But remember: Bikes get stolen everywhere, from Berlin to Bielefeld.

 If a bicycle clause appears to be part of whatever contents policy you have, you should still play it safe and inspect your policy more closely to figure out the specifics. 

Some things to keep in mind are: What lock does the policy require? Are there certain hours of the night when theft isn’t covered (known as a ‘nighttime clause’?) What if a thief only steals your bike seat or one wheel? And how much will you actually be compensated if you make a claim? 

At Lemonade, we offer an add-on called the Anti-Theft Package, which is basically a really generous bicycle clause. 

Here’s an easy rundown of that package’s add-ons benefits and perks. 

The Lemonade Anti-Theft Package

But enough about theft…what happens if you’re riding your bike too fast in the rain and wipe out?  You’re okay (whew!), but who pays for the scratches to your bike frame and the cost of the bent handlebars? 

Special bicycle insurance- do you need it?

Well, if you want to be on the extra safe side, or you don’t have a German contents insurance policy at all, you can take out extra bike insurance. This not only covers you in the event of theft including theft of fixed bicycle parts such as your saddle, but usually has your back during the following scenarios: 

• Accidents, and subsequent repairs
• Vandalism outside your home, e.g. if someone slits your tires
•  Material, production and design defects: However, if less than two years have passed since your bike purchase, these damages fall under the bike’s warranty.
• Wear and tear of bicycle parts
• Accidental damage you cause yourself (e.g. if you did not insert the battery of your e-bike correctly, and it falls and breaks)

Of course, you have to check beforehand what your own insurance company offers exactly. Fees may vary accordingly. 

We’ll be honest: Lemonade’s Anti-Theft Package only covers theft, not the wide array of damages listed above. If you want additional coverage for those scenarios, you might want to consider alternative options. But keep in mind that this sort of ultra-comprehensive bike insurance really only makes sense if you have a very expensive bike.  

What about my e-bike? Is an electric bike subject to insurance?

You didn’t fancy being out of breath while cycling up a hill, so you bought yourself an e-bike to get you up to speed? Of course, this fine piece of equipment is also covered by household insurance, just like all of your belongings, and is therefore protected against the sort of scenarios we’ve already discussed such as burglary, damage caused by fire, water etc. It can be insured against theft under household insurance with the Anti-Theft Package added on to your Lemonade’s contents insurance.

But as you probably know, e-bikes are not cheap, with prices starting at around 1,500 euros and running up to 5,000 euros. If your insurance only covers costs up to a certain amount, like 2,000 euros, you may only be reimbursed a fraction of the original price of your e-bike. Fun fact: Lemonade covers the replacement value of your bike up to 5,000 euros.

In any case, your electric bike is a complex gadget and comes with its own set of problems that you may want to insure against, such as scenarios where the battery dies.

In this case, a separate electric bicycle insurance policy might be a good idea. However, this only applies if your e-bike falls into the category of so-called pedelecs and not S-pedelecs. What the heck is that, you ask? The difference lies in their maximum power: Pedelecs support the cyclist up to 25 km/h, while S-pedelecs, with a support of up to 45 km/h, are more like mopeds. Consequently, different insurance guidelines apply to them.

The Lemonade Anti-Theft Package offers broad protection

Lemonade is insurance for the 21st century.  You can easily buy your digital contents and personal liability insurance without any hassle or paperwork. 

Our charming AI bot Maya will ask you a few questions, and within a few minutes you’ll receive a personalized quote. You’re able to customize all coverages to your needs. For a few euros a month, you can activate our Superpower coverage and add the Anti-Theft Package to your contents insurance. With this, most of your belongings (not just your bike!) are protected against theft wherever you are, whether you’re at the university library or taking a vacation to the coast. 

Fun fact: Compared to some competing contents insurance with a bicycle clause, we waive the unpopular nighttime clause and also insure against theft of bicycle parts. This means that fixed parts of the bike, as well as the saddle, handlebars, or tires are included in the Anti-Theft Package. In addition, we do not insist on a super luxury lock – a standard bicycle lock will do.

Filing claims

Okay, so you got your bike covered, and then your bike got stolen. It’s a bummer, but not a disaster. Filing claims is easy and hassle-free using Lemonade’s app,  with the help of our claims wizard, AI Jim. You answer a few quick questions and record a video explaining exactly what happened.

And voilà, your claim is processed as quickly as possible, generally without any forms to fill out or phone calls to make.

But don’t just take our word for it. 

”Filing a claim with Lemonade was really easy,” says policy holder Christoph from Düsseldorf. “I really liked the fact that you don’t have to laboriously write anything down, but can describe the entire process with your smartphone via video message. I was able to file my claim within minutes. And it was simply outstanding that the money arrived so quickly.”

The post German Bicycle Insurance 101 appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.

Fifty years ago, the economist Milton Friedman published a massively influential essay in the New York Times. His message was clear: The social responsibility of business is to increase its profits. 

In other words, the sole purpose of a company is to make money. Known as ‘Shareholder Theory,’ Friedman’s 1970’s argument became hugely popular—inevitably letting corporations off the hook in terms of any moral responsibility to the greater good.

But in the years since, our world has shifted dramatically—and with it, the way we do business. Amongst harsh economic, racial, and health inequalities, not to mention global climate change and a warming planet, some companies are seeking a better form of capitalism. 

Consumers, employees, and the capital markets are all pressing business to “stop being so much of the problem, and start becoming more of the solution.” 

A new capitalism?

One important step in this direction has been the rise of the B Corporation, a new type of company that’s held accountable for social and environmental impact. A B Corp is basically not that different from the German non-profit GmbH, but unlike the latter, it’s allowed to pass on profits to shareholders.

This higher standard in regard to public welfare is not just lip service, either—there’s a stringent process to make sure that B Corps uphold shared values and practices. This allows mission-driven businesses to better communicate their commitment to society, their workers, and to the natural environment, in a world where everybody claims to be “green” and “good.”

True, the C.E.O.-led Business Roundtable took a stand in 2019—suggesting that a modern company can’t simply print cash, but “must also invest in their employees, protect the environment and deal fairly and ethically with their suppliers.” As a recent follow-up study found, however, this didn’t result in much concrete change. 

The B Corp certification process, however, is about accountability. Or, as Harvard Business Review describes it, it’s a way to stop “corporations donning the persona of a responsible citizen, while continuously performing practices to maximize profit.”

How does a B Corporation work?

It began with B-Lab, a 12-year-old nonprofit organization, which was founded with the aim of balancing profit maximization with a social mission. 

They created a third-party administered certification, the B Corp Certification (think of it as akin to a FairTrade label) based on a company’s verified performance on the B Impact Assessment.

There are only around 3,500 Certified B Corporations, including Lemonade, Ben & Jerry’s, Warby Parker, and Patagonia.

The process grades brands on a points system that measures five key areas: Governance, Workers, Environment, Customers, and Community. A total of 150 questions dig into every part of a business, from your supply chain and charitable giving, to employee benefits and customer satisfaction. 

For instance: How is your company structured to benefit its employees? Does your product or service address a social or economic problem for or through your customers?

And it goes on: How does your company integrate social and environmental performance into decision-making? What is the total energy used during the last 12 months? What’s the company’s lowest wage, as calculated on an hourly basis? What’s the deal with interns, inclusive recruiting, and health and wellness programs for employees?

In order to get certified, each B Corp receives a score at the end of the assessment. Companies need over 80 points to ensure B Corp status—so it’s not just a pass/fail system, but an evaluation that changes as the company does. 

It’s also a healthy reminder that socially responsible companies can always evolve, improve, and do better.

Accountability is key

At any stage, companies can be asked to produce supporting documents to verify the long-term validity of claims, which will be checked by the B Lab assessment board. For example, Lemonade was asked to provide data on our energy use, carbon footprint, and waste management.

But companies don’t only need to pass the 80-point assessment that B Lab has created. 

They also have to adopt a legal framework, explicitly stating that the company will account for all of its stakeholders when making decisions. 

A B Corporation recognizes that it needs to be accountable to its employees, the environment, and society at large.

Keep in mind that stakeholders encompass a much broader category than shareholders. While a traditional company might focus purely on the needs of its board or those who own stocks, a B Corp’s stakeholders include its employees, its suppliers, and the environment.

By creating an infrastructure for stakeholder-orientated capitalism, B Corps have to acknowledge the multiple impacts of their business beyond just financial performance. 

If you’re measuring success solely by profit—not taking into account pollution, social unrest, and any inequality your company might be causing—your balance sheet is not painting an accurate picture. Your pockets might be filling up while the society around you suffers.

Becoming a B Corp

It’s not an easy process, so being labeled a B Corp actually means something. More than 100,000 businesses have signed up for the B Corp Impact Assessment since its launch in 2006, but only 3,500 companies—brands like Ben & Jerrys, Warby Parker, Patagonia, the Guardian, Kickstarter, and AllBirds, along with Lemonade—are certified B Corps. A few German businesses—including Ecosia, Berlin Organics, Startnext, and goood—have also joined the B Corp movement.

Given how much the media and consumers emphasize the importance of a business having a social mission, you’d think all companies would be rushing to achieve B Corp status. Research from Harvard Business Review suggests that, for most companies, there is a significant gap between the belief that a social purpose should be integrated into an organization and their ability to actually do so. 

The B Corp process is no walk in the park (though certification itself doesn’t cost anything). Jamie Oliver, in a recent interview, compared certifying the Jamie Oliver Group to dealing with the UK’s tax service: “It’s fucking hard. It makes the Inland Revenue look like pussycats.” 

As Outland Denim founder James Bartle told Vogue, companies that spend the time and energy to become B Corps generally practice what they preach. “If you don’t want to expose the weaknesses in your business, B Corp will be a negative,” he notes. “It’s a pretty painstaking process to go through for a marketing stunt.”

Lemonade was founded to make insurance into a social good, and our choice to become a B Corp, as well as a public-benefit corporation, legally commits us to our double bottom line. That requires being upfront about what we think ‘good’ is, and is not. Through initiatives like our Giveback program—and our stance on issues like gun control and coal—we strive to align ourselves with our best sense of what’s the right thing to do. It’s a mission shared by the B Corp community, a club we’re proud to be a part of.

The post The B Corporation, Explained appeared first on Lemonade Blog — Storys über das Leben, Tech & Versicherung.