Besides health insurance, which is obligatory in Germany, we strongly recommend that international students take out a liability insurance policy. Liability insurance protects the policy holder against third party claims within the context of a previously arranged coverage. Under this insurance, payment is not typically made to the insured party, but rather to the person who suffered loss, damage or pain and is not a part of the insurance policy. In general, damage caused intentionally and contractual liabilities are not covered under liability insurance policies. This insurance covers typical everyday risks (e.g. the damage caused by a bike hitting a car). In particular, liability for owning or renting a house or apartment as well as for athletic activities is to a limited extent covered by this insurance. Usually, students can arrange liability insurance in their home country. Be sure, however, that the particular liability insurance policy is also valid in foreign countries, especially in Germany.