Third party insurance covers you against claims for material damages and personal injuries caused to any third part by you. If you do not have such an insurance you have to consider that you have to bear the damage. This can be very expensive.

It can therefore be advisable to take out a third-party insurance (Haftpflichtversicherung) for the duration of your stay. Especially for students it is expedient to cover from rental damages like for example burst (water) pipe.

Standard third-party insurance policies are not expensive and conditions usually similar between providers.