Homeowners insurance is one of the most important types of insurance. It intervenes in the event of damage that can hit and even destroy any building, for example fire, storm, hail or tap water damage. However, there are a few things to consider when taking out this insurance so that no gaps are left open. Important questions and answers:
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Who Needs Home Insurance?
“If you have a house, you absolutely need residential building insurance,” says Anna Follmann from the Rhineland-Palatinate consumer center. “If it is missing, there is a risk of financial ruin in the event of extreme damage, because hardly anyone can, for example, rebuild their own home on their own after a devastating fire.”
What is covered?
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Risks resulting from fire, storm, hail and water damage are insured. “It should be noted that only the residential building itself is insured, but not its contents,” emphasizes Anna Follmann. “In the event of damage, the insurer pays all the costs of repairing the property or rebuilding it completely. But not every insurance covers all risks. “
Are there typical loopholes that consumers should look out for?
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Gross negligence is not covered from the outset in every policy. “This means that the insured remain seated on their damage if they caused it through gross negligence,” explains Annegret Jende from Stiftung Warentest in Berlin. “For example, if the house catches fire because you forgot a candle that was lit.”
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Do I need natural hazards insurance?
This protection against natural hazards is becoming more and more important. “The natural hazard insurance cannot be taken out individually, but only in combination with a residential building insurance,” explains Bianca Boss, spokeswoman for the Association of Insureds. “As a result of climate change, heavy rain, storms and other natural hazards are increasing and also affecting areas in which the residents were largely spared. That is why every homeowner is well advised to take out insurance against such damage, ”says Annegret Jende. “If you don’t have this kind of security, you should take action urgently,” she advises.
Will the insurance be much more expensive then?
The higher the risk, the more expensive the insurance company will pay for the protection. “It is also not uncommon for the insurer to take too great a risk and only insure it with a high deductible,” says Bianca Boss. “If the building has already been affected by natural hazards or if it has to be assigned to a very high hazard class (ZÜRS zone), the owner will have a hard time getting a policy at all.”
Should you also take out additional insurance?
“Everyone should check individually what is important to them beyond the basic protection,” advises Anna Follmann. The consumer advice center considers clean-up and demolition costs, the costs for compliance with current building regulations, for the removal of overvoltage damage and the decontamination of the floor to be essential. For many consumers, additional services such as hotel costs or costs for experts are not so important. “But that’s a matter of opinion.”
What services could you do without?
On home cover letters that insurers like to sell. “These policies tend to offer little help. For example, they provide tradespeople or help find a replacement apartment. These additives cost money unnecessarily and in the end offer almost nothing that you couldn’t do yourself in an emergency, ”says Anna Follmann.
Can the insurer terminate the policy after a claim?
“Yes, then he has a special right of termination,” says Bianca Boss. Both contracting parties have this right after a loss event and after a premium increase that is not accompanied by an improvement in benefits. But be careful: If consumers want to cancel, they should look for a new insurance policy beforehand.
If the insurer terminates the contract, customers have a bad chance of finding another insurance policy on good terms. “Because the new insurer asks whether and where insurance cover has been granted so far. The new provider usually interprets a termination by the insurer as an exclusion because the risk of damage is too high, ”says Anna Follmann.
When does a policy need to be updated?
If something changes in the property, consumers have to approach their insurance company on their own initiative. For example, if the value of the building has increased after a modernization. “Risks that have been added after the contract was signed must also be communicated to the insurer,” says Bianca Boss. These include a longer vacancy of the building, a different use or newly added dangerous businesses in the neighborhood.
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