MDR at 4: Which GDR insurance policies do many people still have?
Fabian Holzheimer, Consumer Center Saxony: In the GDR, on the one hand, this was household insurance – a bundle of private liability, household contents and luggage insurance. It was adopted that way after the fall of communism. On the other hand, this is building insurance.
What is the big advantage of old building insurance?
The big special feature is that the so-called natural hazards were regularly insured. And above all, that is the risk of flooding. It is special because many newer contracts no longer offer this coverage in certain areas. The insurer looks: Is it a risk area? And then it may be that the premium becomes very expensive or that a building is actually no longer insurable.
The GDR also insured the house even when it was already halfway into the Elbe.
A colleague, now retired, always put it this way: The GDR insured the house even when it was already halfway up the Elbe. Nowadays it is difficult to insure it if it is on the Elbe.
Does it make sense to change your building insurance?
Homeowners should keep their insurance, especially if they live in a flood zone or in a region where there is an increased risk of other natural hazards. If you are considering a change, you should only cancel your old insurance once the new contract has been concluded. Otherwise you may find yourself without insurance cover for the house.
A newer contract can insure risks that were not likely to be included in older contracts. This could be, for example, that there was a technical change that was not foreseeable at the time – through photovoltaics, etc.
In general, so-called costs are less insured with old insurance policies. If there is damage to the house, costs will also arise because the rubble has to be cleared away. There are new tariffs that go significantly further than old tariffs. Hotel accommodation costs that arise because an apartment is uninhabitable are also an issue: they are usually covered in new contracts, while residential building insurance from the GDR era often only pays for the material damage caused.
Tipp
Be sure to read the fine print. What exactly does the insurance cover and up to what amounts? When changing a contract, take your time and under no circumstances sign immediately. It is better to read the contracts carefully and perhaps even have them checked by an independent expert.
Why should you consider newer contracts for your old household insurance?
On the one hand, certain things could be insured that were not yet foreseeable at the end of the 80s and beginning of the 90s – such as the photovoltaic system or charging station for electric cars. And then there are certain building blocks that old contracts often do not have. These could, for example, be certain restrictions in cases of gross negligence that are still in old contracts but not in new ones.
Can a policy like this continue forever?
GDR policies can theoretically last for a very long time. But they don’t have long running times. These are usually annual contracts and at the end of the year both the policyholder and the insurer can cancel. There are also certain special termination options after claims. At some point they will most likely end. But there is no single expiry date.
2023-10-11 08:31:19
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