Homeowners insurance for the protection of your building
A fire or a storm can destroy your property in a matter of seconds. Of course, no one wants to imagine such a scenario - but you should still insure yourself against possible consequences. Homeowners insurance is one of the classics among insurances for real estate and is recommended to every owner. Although it is not compulsory, banks often require it in order to grant a loan. Residential building insurance also makes sense if you rent out flats: If damage is caused to your flat by the tenant, the costs are covered by the insurance depending on the individual case. Otherwise, the tenant's liability insurance takes effect.
In the event of fire, lightning, explosion, mains water, storm and hail damage, residential buildings insurance offers you comprehensive protection for all parts of your property. This includes the roof, walls, built-in doors and windows, terraces, balconies and other permanently installed components such as kitchens, built-in furniture, permanently laid floors, a stair lift or sanitary installations including the heating system. However, the following are excluded from the insurance coverage of the residential building insurance:
- Movable furniture or valuables
- Parts of the building that a tenant has inserted himself/herself
- other property components, such as fences or garden lanterns
- Building accessories serving commercial purposes
In addition, residential buildings insurance does not cover all natural damage. In order to be fully insured against natural forces, a natural hazards insurance is necessary.
Good to know: As a homeowner, you must take out homeowners insurance on your own. If you are the owner of a flat in a block of flats, it is usually taken out by the relevant housing association or society.
Additionally recommended: Natural hazard insurance
Although building insurance provides you with comprehensive protection, in most cases you are not insured against natural hazards. However, natural disasters often result in a total loss of your building, which is why you should consider taking out natural hazard insurance as a homeowner.
This property insurance covers damage caused by natural forces such as floods, earthquakes, subsidence, landslides, snow pressure, avalanches and volcanic eruptions as an add-on to household contents or residential buildings insurance. As usual, damage caused intentionally or by gross negligence is not included in the insurance cover.
Household contents insurance to protect your inventory
Residential building insurance and insurance against natural hazards cover damage to the fabric of the building. If you also want to protect your inventory, it is worth taking out household contents insurance. This covers all your household effects against destruction, damage and loss. The term "household effects" covers all items that are used and furnished in the household. This also includes valuables such as:
- Cash
- Money cards
- Documents such as securities or savings books
- Jewellery and valuable collections (stamps, coins, etc.)
- Works of art
- Furs and
- Antiques
The range of benefits of household insurance includes, for example, damage caused by fire, direct lightning strike or an explosion. Burglary, robbery and vandalism are also covered by household insurance. A distinction is made between burglary and simple theft: While simple theft involves the removal of objects without force, burglary or robbery involves the use of force on objects or persons. According to the burglary statistics of the Federal Criminal Police Office, a burglary is attempted every seven minutes in Germany. Another good reason to opt for this insurance!
In addition, damage caused by tap water such as burst pipes or burst hoses, as well as destruction caused by storms with a wind force of eight or more and hail damage are covered by household insurance. Damage caused by floods, groundwater or heavy rain is usually not covered by the insurer. For this purpose, you should take out the previously mentioned natural hazards insurance.
The amount of the premium for your household insurance depends on several aspects, such as the sum insured, the place of residence and the insurance company. There are two different ways to determine the value of the household contents to be insured:
