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WEDNESDAY, APRIL 14, 2021

Which home owner insurance is the best for my needs?

Which home owner insurance is the best for my needs?

Many people underestimate the high value of their household goods and the financial impact of the damage that a fire, burst water pipe or burglary can have. If, for example, a fire leads to a total loss in the home, large sums of money are quickly involved if the entire household contents have to be replaced. Damage caused by overvoltage (lightning), which destroys or damages electronic equipment, is also a frequent occurrence.

What do I have to pay attention to when taking out insurance?

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The important thing is the amount of the sum insured, which is either agreed as a lump sum according to the size of the home or estimated by the policyholder. The advantage of the lump sum is that the insurer cannot reduce the benefit due to the so-called “underinsurance waiver”. An existing insurance policy should be regularly checked to ensure that it is up to date and, if necessary, adjusted. After all, even a homeowner’s insurance policy taken out many years ago is only helpful if the sum insured is constantly adjusted to reflect rising prosperity.

How high is the annual premium?

The amount of the premium is not only determined by the benefits of the tariff and the sum insured. The place of residence of the insured person is also decisive, as providers divide the federal territory into different risk zones. For example, the city of Hanover is assigned a medium risk, which is why the cheapest insurance can be taken out there for $115 and the most expensive policy for $531 per year.

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Which insurance should I choose?

Before taking out a home owner insurance policy, the first thing to do is to determine the right sum insured. This is done either on the basis of the usual lump sum of $650 per quadrameter or by estimating the belongings yourself. Favorable tariffs include a basic protection, which usually covers damage caused by burglary, robbery, vandalism, fire, power water, storm and hail. It should be noted that garden sheds or garages are also included. Likewise, surge damage after lightning strikes should be insured, as it can damage electrical equipment. If necessary, theft of bicycles or damage caused by aquariums can also be covered.

Also make sure that your tariff includes the so-called underinsurance waiver, which will compensate you for the full damage even if you have specified a sum insured that is too low compared to the actual value of your household goods.

If you want to find out more about home insurance and its benefits, we offer you several options. In our FAQ section, we explain the most frequently asked questions. In addition, a comprehensive glossary contains the most important technical terms from the field of home owner insurance.

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