Contents insurance policies tax-deductible: Make the most of the potential for your 2024 tax return
17.06.25
3
Minutes
Katrin Straub
Managing Director at nextsure
Can you claim your contents insurance against tax? The answer is often more complex than a simple yes or no. Find out under which conditions you can deduct up to 100 per cent of the proportionate costs of your home office.
The topic in brief and concise terms
Household contents insurance is generally not tax-deductible unless you use a recognised home office – then a proportional deduction is possible.
The amount of the deductible portion depends on the percentage share of the home office in the total living area, often between ten and twenty per cent.
Employees, self-employed people and students can benefit, but must meet strict documentation requirements and state the costs correctly in their tax return (Schedule N, EÜR or main tax form).
Understanding the basics: home contents insurance and tax treatment
Contents insurance protects your household contents against damage caused by fire, water leaks or burglary. It is one of the types of property insurance that primarily cover private risks. As a result, the premiums are generally not deductible as special expenses or business expenses. However, there is one important exception that benefits thousands of taxpayers each year. This exception concerns the home office and its professional use. Correctly declaring this can reduce your tax burden by a few hundred euros. Learn more about the scope of contents insurance. The distinction between retirement provisions and property insurance is crucial here for the tax office.
Check the requirements: When is contents insurance tax-deductible?
Contents insurance is only tax-deductible on a pro rata basis if you use a home office. This room must meet certain criteria, which the tax office checks strictly. It must be a separate, enclosed room. A work corner in the living room, for example, is not sufficient. At least ninety per cent of the use must be for professional or business purposes. The home office must also form the centre of your entire professional activity, or no other workplace may be available to you. This rule affects more than one million employees working from home each year. Recognition is often linked to more than five criteria. Read more on the topic insurance and tax.
The following points are essential for a home office to be recognised:
Separate, lockable room within the private home.
Almost exclusively professional use (at least ninety per cent).
Office-style furnishings (desk, office chair, shelves).
No significant private shared use of the room.
Necessity for the professional activity (e.g. no other workplace available).
The tax office’s exact review of these requirements is standard and can lead to queries in up to fifteen per cent of applications.
Optimise your calculation: how to determine the deductible proportion correctly
The tax-deductible portion of your contents insurance is calculated according to the ratio of floor space. You divide the square metreage of your home office by the total living area of your flat. You then multiply the result by your annual contents insurance premiums. For example: your flat is 100 square metres, and the home office measures 15 square metres. Your contents insurance costs 120 euros per year. You can therefore deduct 15 per cent of 120 euros, i.e. 18 euros. This method of calculation is accepted by all tax offices in Germany. For an exact contents insurance calculation, we are happy to help you. This method has been established for more than ten years.
Our expert tip: Keep accurate records of all relevant measurements and costs. Clear documentation with three to four supporting documents makes recognition by the tax office much easier. Keep your tenancy agreement, floor plan and proof of contributions for at least two years.
Mastering the entry: correctly declaring household contents insurance in your tax return
Where you enter the costs depends on your professional situation. Employees declare the deductible portion in Annex N as employment-related expenses. Self-employed people and freelancers claim the costs as business expenses in the income surplus statement (EÜR). Students and trainees can enter the costs as special expenses in the main tax return, provided the study room is used for training. Correct allocation is crucial for a successful deduction and affects more than two million tax cases each year. Find out, where insurance is entered. For landlords of a furnished flat, Annex V applies to income from letting and leasing.
The documents typically required for the tax office include:
A floor plan of the flat with the study marked and precise area details.
The tenancy agreement or purchase contract to confirm the total living area.
Your contents insurance policy.
Bank statements or premium invoices as proof of the insurance premiums paid.
A comprehensible calculation of the deductible portion.
The tax office can request these documents for up to four years after the notice is issued.
Special cases and alternatives: home office allowance and landlords
If your workplace does not meet all the strict criteria for a home office, you can use the working from home flat-rate allowance. This amounts to six euros per day, but a maximum of 1,260 euros per year (for 210 days). Costs for household contents insurance are, however, not separately deductible within this flat-rate allowance. It covers general additional expenses incurred when working from home. This flat-rate allowance became relevant for over five million employees. Landlords of furnished flats can claim contents insurance for the rented property as income-related expenses in Schedule V. This affects an estimated 500,000 rental cases in Germany. The distinction is crucial here for tax recognition.
Gain an overview: more tax-deductible insurance policies at a glance
In addition to household contents insurance for a home office, there are other policies that can reduce your tax burden. These include, above all, pension expenses such as contributions to health and long-term care insurance (basic cover is 100 per cent tax-deductible). Private liability insurance, accident insurance and occupational disability insurance are also deductible as other pension expenses. The following maximum amounts apply: EUR 1,900 for employees and pensioners, EUR 2,800 for self-employed people. These amounts are used annually by more than 30 million taxpayers. An overview of which insurance policies are deductible will help you further. The nextsure experts will be happy to advise you on your individual options for optimising your insurance situation. This can save you several hundred euros a year.
Our expert tip: Review your insurance policies and the current tax rules every year. Changes in the law or new court rulings often create new savings potential of up to ten per cent. Professional advice can be worth its weight in gold here.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific suggestions for optimisation.
More useful links
Wikipedia offers a comprehensive article on household contents insurance.
The Verbraucherzentrale provides information on the importance of furnishings value for household contents insurance.
The Verbraucherzentrale Niedersachsen highlights the importance of household contents insurance for households.
The Verbraucherzentrale RLP offers a press release on the proper insurance cover for residential buildings and household contents.
Destatis (Statistisches Bundesamt) publishes press releases on insurance coverage in Germany.
Destatis offers interactive graphics on insurance premiums of private households.
Destatis provides publications on the household equipment of private households, relevant for valuation.
The VLH (Lohnsteuerhilfeverein) informs which insurance policies can be claimed for tax purposes.
The Lohi (Lohnsteuerhilfe) offers tax tips on the deductibility of insurance policies.
FAQ
Is contents insurance for students tax deductible?
Yes, students can claim contents insurance as a proportionate special expense if they have a separate study that is used almost exclusively (at least ninety percent) for study purposes.
Can landlords claim contents insurance for tax purposes?
Yes, landlords of furnished flats can claim the premiums for contents insurance for the rented flat as deductible expenses in Schedule V of their tax return.
Where do I enter the deductible costs of home contents insurance in my tax return?
Employees use the Anlage N (employment expenses). Self-employed people use the Einnahmen-Überschuss-Rechnung (business expenses). Students use the Mantelbogen (special expenses). Landlords use the Anlage V.
How strictly does the tax office scrutinise a home office?
The tax office examines the requirements for a home office very carefully. It must be a separate room that is used almost exclusively for work and often forms the focal point of the activity. A work corner is not sufficient.
Is there a cap on the deduction for home contents insurance?
There is no direct upper limit for the proportional deduction of the household contents insurance itself, apart from the contributions actually paid. However, the total costs for the study may be limited (e.g. up to 1,260 euros if it is not the main focus of the activity, but no other workplace is available).
Which other insurance policies are tax-deductible, in proportion, in addition to contents insurance?
The main deductible expenses are provision costs such as health, long-term care, accident, liability and occupational disability insurance. Motor vehicle liability insurance is also partially deductible.
