Household insurance or home contents insurance (Hausratversicherung) is another voluntary yet highly recommended and useful insurance. Sometimes it is a requirement in the rental contracts especially in furnished properties and is worth purchasing if you have valuable assets. It covers the damage caused to the contents of your home as a consequence oftheft, fire, storms, floods, etc.It is important to know that, household insurance differs from homeowners’insurance (Wohngebäudeversicherung) as it is concerned with movable assets and properties instead of the costs associated with the actual building.
Which things are covered under household insurance?
In general, this insurance policy covers only movable assets and possessions that are owned by you in your apartment. Every object you have in your home is considered a domestic appliance andis entitled to compensation and covered under household insurance in Germany. Domestic goods include furniture, clothes, carpets, electrical appliances, other valuables in your house, and a lot more. One of the best things about this insurance is that many insurance providersnot only cover the damages caused within your home but also cover the damages caused to your belongings outside your home too.
For example, you’re staying in a hotel on a vacation, in case of theft, many of the insurance providers compensate for the things that are stolen. If you have any expensive valuables like art pieces, jewelry, cash, certificates, etc.,you’re most likely to pay a premium.
Which things are not covered under household insurance?
Although household insurance covers a wide range of domestic things, few other things are not covered. In Germany,many other insurance policies cover those things. Let’s have a look at all the things that are not covered under household insurance.
- Glass damage: This includes damage caused to your smartphone, TV screen, ceramic hob, aquariums, etc. It is extra coverage that needs to be added on.
- Vehicles, including bicycles: Usually these need a separate policy. It is important to know that bikes are not always included in household insurance. Even if they are included in certain policies, there will be some conditions with compensation up to a certain level.
- Gross negligence: Also, the household insurance doesn’t pay 100% on your gross negligence. For example, you leave your apartment forgetting to close the window and theft occurs. Another example could be things stolen by the cleaner or maid from your apartment. This is considered a regular theft and is not covered under the house contents insurance.
- Fixtures and fittings are not covered here but are covered by homeowners’ insurance.
- Equipment or properties that are rented or are not owned by you. This includes business equipment as well.
- Damages caused by guests or pets
Add-ons that can be purchased with household Insurance by some insurance providers
- Glass: This includes aquariums, windows, glass furniture, induction cooktops, etc.
- Bikes: Some insurance providers do not cover if your bike is stolen outside other than your home. If you’re a person who uses a bike often, it will be an advantage if you consider this ad-on.
- Valuables: Most of the insurance providers will pay backapproximately 20-25%of the insured sum any expensive valuables like art pieces, jewelry, cash, certificates, etc. have been affected. Make sure your insurance policy covers 100% if you have any expensive valuables.
- Gross negligence: Many insurance providers will not cover if any damage happens because of your negligence. And few providers request adding gross negligence to your insurance package to ensure 100% coverage in case of any damages caused by you.
- Data-related issue costs: Including all the things available in your home, some insurance providers also cover losses due to data recovery, damage caused to the legally downloaded files on your computer, and loss due to phishing emails.
- Storage and transportation cost: This covers the costs incurred for storage and transport of the insured property, in case the apartment can no longer be used and you cannot store anything there.
- Cleanup cost:This covers the costs for cleaning, removal, and disposal of the insured things.
- Guarding cost: This comprises the costs of safeguarding the insured flat if in case it becomes unfit to live and/or other security measures don’t provide satisfactory protection.
- Protection and movement cost:This includes the costs for moving other things for the restoration and recovery of the insured items.
- Cost for changing lock:This takes into consideration the costs for changing the lock if the keys are lost.
- Damage repair costs for the building: This covers the cost ensued from the damage of the property due to theft, robbery or burglary, or the attempt of such an act within the house.
How the household contents are insured?
In German household insurance, it is not required for you to insure each item individually. The household contents are calculated based on the overall amount insured, which applies to the complete household. It is generally estimated as 650 Euros per meter square i.e.,
Size of your flat (in m2) x 650 Euros.
How much should you insure your household contents for?
It is essential that you invest enough time and energy to provide an accurate estimate of your content. This is because only you will be knowing the worth of your possessions. And the insurance company is not responsible for calculating the value of your contents. You should make sure that your insurance coverage must be enough to compensate for all your household contents in case they are destroyed or damaged.
Tips:
- Check all the rooms one by one and take pictures or videos of the things that are important to you.
- Take photos of the receipts if you still have them.
- For expensive things like electronics make sure to keep a note of the model, when, and where you purchased the product.
- Make a list of all the important things and estimate the overall cost for the things listed.
- Maintain a backup of the photos and videos of the things and bills. Even if you miss the data you stored on one device or if you lose the original bills, you’ll have alternate proof.
- Try to make a rough estimation of your kitchen items other than the electrical appliances, clothes, and other things in your home. This will give you an idea, on average how much the sum of your insurance policy should be.
- Update your list of contents at least once a year to ensure that the insurance policy covers all your belongings and valuables.
Important things to consider while choosing household insurance
- Coverage for expensive valuables: In case you have anything highly expensive assets and possessions, make sure that your insurance provider will cover 100% ofthose items if they are damaged or stolen.
- Coverage of items outside of your home: This comprises the insurance coverage while traveling, staying in a hospital, gym locker, health spa, etc.
- Adding spouse and family members: If applicable, make sure to add your spouse or family members to your policy.
- Requirements of the insurer: Confirm with your insurer, if you need to inform them while traveling. Some insurance providers require this information if you are away from home for more than 60 days.
Note: Some insurance companies include the deductible amount on every claim. By deductible, it means the amount covered by you in case of damage. The amount you choose is the amount you pay per damage. This is generally overlooked,so make sure to read and understand the insurance policy terms and conditions clearly. Higher the deducible amount cheaper the insurance premium.
How to claim household insurance in Germany?
Claiming the home contents insurance will differ from company to company, so it is mandatory to check the procedure when you’re signing up for a policy. Even the deadlines for filling and reporting the claim vary from insurer to insurer so always keep a note of that. The claim can be either made online or via phone. For this, you have to provide your details of the claim as well as the information about the things that have been damaged or lost. It will be very helpful and useful if you keep the receipts of the things when you purchase them, especially the expensive products. So that you’ll have proof of the actual cost of the items. In case of theft, it may be required to provide the details of the police report.
Changing the insurance provider or cancelling the contract
The cancellation procedure for the household insurance again varies from insurer to insurer. The cancellation must be done in writing either via email or letter. Initially, all insurance providers will offer a cooling-off period, where the customers can cancel the agreements in a short period after signing up. Typically, German insurance contracts run for 1 year, nevertheless,some have a clause to cancel the contract anytime and some may run for longer.This is why it is mandatory to check for the cancellation procedure before signing the contract.You will be able to get out of a specific contract quickly without any particular reason if the contract period is short.
Some of the reasons that are accepted for early termination of the contract include:
- Moving to a different place
- Selling your home
- Change of personal circumstances
Difference between household insurance (Hausratversicherung), homeowners’ insurance (Wohngebäudeversicherung), and liability insurance (Haftpflichtversicherung)
These three policies seem quite similar and confusing to many people. So, here is the difference between the three insurance policies.
Household insurance will cover the costs of replacing your things in the event of theft or damage caused to the things because of fire, storm, or floods. Based on the type of your insurance, your negligence may also be covered.
Homeowners’ insurance covers similar risks as household insurance, such as fire, storm, floods, tap water damage, but covers the damages for different things. This insures a complete building including garages or garden sheds as well as all permanently installed parts, such as pipes, walls, or doors.
Liability insurance will cover the cost of the damages you accidentally cause to your or your neighbors’ flat.
If you are interested in knowing about all the insurance policies, you can easily book an appointment with us and get a personal consultation using the link below. It is also important to know that some insurance providers will give discounts if you’re planning to take multiple insurance policies together.
We believe, by reading this article you gotan overview of household insurance in Germany. Even if you plan to choose the most basic insurance policy, it is still beneficial. You get so much out of it, and investing in it will definitely reduce a lot of financial burden in case of any damage or theft of your belongings.