The Consumer Advice Center NRW recommends comparing prices and services and finding insurance gaps.
Anyone who owns a house cannot avoid this insurance: from the point of view of the consumer advice center NRW, residential building insurance, ideally in combination with natural hazard insurance, is an absolute must for homeowners. houses. Because both together cover damages that can be extremely expensive, such as fire, storm or hail damage in the context of building insurance and natural hazards insurance, for example floods. The premiums for these insurances will in many cases increase in 2023. Martin Meiser, head of the Consumer Center NRW’s advice center in Recklinghausen, explains what to look out for.
What to do in case of premium increase?
Premiums for housing and natural hazards insurance are expected to rise sharply in the coming year. This is due to several factors. On the one hand, there are the insurers’ past regulatory costs for the summer 2021 flood catastrophe. On the other hand, high inflation is also having an effect here, as insurers have to pay more for repair costs , material and construction. Reinsurers, with whom insurance companies protect themselves, will demand higher premiums with reference to inflation and the increase in risks from natural catastrophes. Interested persons should therefore keep an eye on their contribution for these contracts or parts of the contract and can – after a comparison of conditions and contributions – switch providers.
What should building insurance cover?
The basic building blocks are protection against fire, tap water and natural hazards such as storms and hail. In addition to building insurance, natural hazard protection is strongly recommended. These include: flood damage, backwaters, earthquakes, subsidence, landslides, snow pressure, avalanches and often volcanic eruptions. It is particularly important that damage caused by heavy rain is also expressly insured. The price and performance differences are sometimes huge. Gaps in insurance coverage can be costly, for example if new solar systems are not included, damage due to gross negligence is not insured, or demolition or hotel costs are not included if the property is uninhabitable. The advice centers of the Consumer Advice Center North Rhine-Westphalia offer individual insurance advice (for a fee).
What should be considered in case of withdrawal?
If the loans are secured through the land registry of the home, a change of insurance with long lead times must be made. Because the lenders of such loans have to agree to the termination of the existing insurance contract. Fixed-term insurance contracts can be terminated upon expiry. If the duration of the contract exceeds three years, termination may be given at the end of the third year or any subsequent year. As a rule, notice of termination must reach the insurer three months before the end of the contract. A reason for termination is not required. However, you should definitely avoid getting fired by the insurance company. This can happen if you have too many requests or if you don’t sign an award or conditions adjustment. The trick: With a new application, customers have to declare that the previous contract has been terminated by the previous insurer. So a new insurer would usually only insure the building at a higher premium, with a higher deductible, or not at all.
Further information and links:
Learn more about homeowners insurance
www.verbraucherzentrale.de/node/40830
Learn more about insurance advice at
Verbraucherzentrale.nrw/node/1445
