Private liability insurance in Luxembourg: what to do if you damage something at someone's place
Skimming?
We've prepared the shortcut for you.
What exactly is private liability insurance?
Private liability insurance, often called RC privée or RC familiale in Luxembourg, is an insurance guarantee that protects you financially when you unintentionally cause damage to someone else in your everyday life. Its legal basis rests on Article 1382 of the Luxembourg Civil Code, which essentially states that if you cause damage to someone, you must repair it.
In practical terms, it covers everyday situations: you spill coffee on a colleague's computer, your dog bites the postman, your child breaks a classmate's glasses. Both material and bodily damage are covered.
In Luxembourg, private liability is not mandatory for everyone, but over 80% of households take it out. It's generally included as an option in your home insurance, meaning if you've insured your home, there's a good chance you're already covered. Still, check your contract, as some insurers don't include it automatically.
Who is covered by your private liability? As a rule, it includes you, your spouse or partner, your minor children living under your roof, and your adult children as long as they're still financially dependent on you (students, for example). Your pets are also covered for any damage they might cause. In Luxembourg, four insurers are approved by the Commissariat aux Assurances (CAA): LALUX, Foyer, AXA and Baloise.
The 4 steps if you cause damage
Stay calm and inform the person
First reflex: don't panic. Let your friend or the person concerned know what happened. Be factual in your description. An important detail: don't make any written admission of liability and don't sign anything on the spot. It's not your job to determine who's responsible - that's your insurer's job. Be honest and transparent, but avoid phrases like "it's entirely my fault, I'll pay for everything" - your insurance could complicate things afterwards.
Don't downplay the damage either. If the damage is real, denying or underestimating it will only make things worse.
Document the incident
Grab your phone and take clear photos of the damage from several angles. Note the circumstances: date, time, place, and how it happened. If other people were present, note their contact details as potential witnesses.
If the affected person has a quote or invoice for the damaged item, ask them to send it to you. Otherwise, they can get a repair or replacement quote. This document will be useful later.
Gather the info for your insurer
Before contacting your insurance, prepare the following to avoid back-and-forth: your liability contract number (or your home insurance contract if liability is included), full contact details of the person who suffered the damage (name, address, phone, email), a factual description of what happened, the photos you took, and the quote or invoice if available.
Report to your insurer within 8 days
This is the standard deadline set by insurance contracts in Luxembourg: you have 8 days after the incident to report it to your insurer. This deadline is the same for all four CAA-approved insurers (LALUX, Foyer, AXA, Baloise). After this deadline, your insurer could refuse to cover the claim.
You can report in several ways depending on your insurer: via your insurer's mobile app, on your online client portal, by email to the claims department, by phone, or as a last resort by registered mail. Online reporting is usually the fastest and gives you an immediate acknowledgment of receipt.
Once your report is filed, your insurer contacts the affected person to assess the damage and handle the compensation. You normally don't need to get involved directly anymore.
A concrete example to make things clear
Let's imagine the situation: you're at a friend's place for dinner, you stand up from the table and knock their laptop off the armrest of the couch. The screen is cracked, the repairer estimates the damage at €800.
You take photos, note the circumstances, and report the claim to your insurer the next day via the online portal. Your insurer checks your contract, confirms that private liability applies, and contacts your friend. If your deductible is €200 (a common amount for private liability), your insurer compensates your friend for €600 and the remaining €200 is on you. Your friend gets the full €800, and you only paid the deductible.
On the other hand, if you didn't have private liability insurance, you would have had to pay the full €800 out of pocket. And if your friend decided not to let it slide, they could have taken you to court to get compensation.
What private liability doesn't cover
Your private liability has limits. Knowing them will save you some unpleasant surprises.
Damage between members of your own household is not covered. If you break your partner's phone or your son spills coffee on your own laptop, liability doesn't apply. It only works between you and third parties, meaning people outside your household.
Intentional damage is excluded. If your teenager deliberately spray-paints the neighbour's wall, your insurance won't cover it. Liability only protects against accidental and unintentional damage.
Anything related to your professional activity is excluded too. If you break something while providing a professional service, you need separate professional liability insurance, not your private liability.
Motor vehicles have their own insurance regime. If you cause an accident with your car, it's your car liability (mandatory in Luxembourg) that kicks in, not your private liability.
Your own belongings are not covered. If you break your own phone at a friend's place, liability is useless. It only covers damage caused to others.
Is private liability mandatory in Luxembourg?
Not for everyone. Private liability is not mandatory as a general rule in Luxembourg. But there are three exceptions where it becomes compulsory: if you own a dog (required by the law of 9 May 2008, and your municipality will ask for proof of liability insurance), if you practice hunting (hunting liability is mandatory), and if you do recreational boating.
Outside of these cases, it remains strongly recommended. With over 80% of households covered, not having it is the exception. And when you consider that a simple accident can lead to costs of several thousand euros, the cost of private liability (a few dozen euros per year, often included in home insurance) is negligible compared to the risk.
Bonus: your liability premiums are tax-deductible
Your private liability premium is deductible from your taxable income in Luxembourg. It's Article 111 of the income tax law (LIR) that provides for this. The annual deduction cap is €672 per member of the tax household. This cap is shared with other deductible premiums like car liability, life insurance, accident insurance and supplementary health insurance.
In practice, your insurer sends you a tax certificate every January indicating the deductible amount. You report it in your tax return (form 100), section "Special expenses - Insurance premiums and contributions". The return can be filed online via MyGuichet.lu or by post. For details on deductible premiums, check the ACD page on insurance premiums and contributions (ouvre dans un nouvel onglet).
Note that only the liability portion of your premium is deductible. Guarantees covering material risks like theft, fire or broken glass are not.
A tax advisor can help you optimise your deductions if your situation is complex, especially if you're a cross-border worker.
Frequently asked questions
The standard deadline is 8 days from when the incident occurred. This is the deadline set by the general conditions of the four CAA-approved insurers in Luxembourg. In cases of force majeure, exceptions may apply, but it's best not to count on it.
Yes, as long as your child lives under your roof. Minor children are automatically covered by their parents' private liability. Adult children are also covered as long as they live at the family home and remain financially dependent on you (typically during their studies).
Yes. The four CAA-approved insurers in Luxembourg confirm in their IPID documents that private liability coverage extends worldwide. If you cause accidental damage while on holiday in Belgium, France or further afield, your private liability applies.
The deductible amount varies by contract and insurer. In practice, a deductible between €150 and €250 is common for private liability claims in Luxembourg. Check your contract terms for the exact amount. Some insurers let you adjust the deductible, which affects your premium.
Without private liability, you'll have to compensate the victim out of your own pocket. Luxembourg's Civil Code is clear on this point: any damage caused to someone must be repaired. If the amount is high and you can't reach an amicable agreement, the injured party can take legal action. For a few dozen euros a year, private liability protects you against a risk that can be very costly.