What does the policy cover?
What to do if a fire breaks out in the home, breaks the water pipe or is broken in and valuable objects are stolen? The occurrence of certain situations can not always be avoided. But you can protect yourself against the consequential damage and ensure that the destroyed or lost belongings and their value is replaced as quickly as possible, without you even get into financial distress – with a household contents insurance.
What does home contents insurance cover?
The policy insures damage to your household contents. This includes the entire inventory of your household:
- Furnishings , such as furniture such as table, wardrobe, couch, bed, etc.
- Commodities such as household appliances, television, PC or clothing
- Consumables , for example food or fuel oil
- Valuables such as jewelry or cash
In this case, the insurance comes into effect if material damage has been caused to the inventory due to the following causes:
- Storm / Lightning
- Tap water / Rohrbruch
- Burglary / theft or robbery
The insurance also covers possible follow-up costs, such as clean-up costs or accommodation costs in a hotel, because you could not live in your home for a while due to the damage. In addition, a household insurance is necessary if you want to protect against bicycle theft, natural hazards (flood, earthquake or avalanche) and glass breakage.
Examples of when household contents insurance will pay for damage
The table gives a few examples that make it clear in which cases a household insurance can be necessary and useful:
Damage caused by theft
Burglars forcibly gain access to your home and steal jewelery, TVs and PCs. The insurance covers damage caused by the theft. In addition, it is responsible for costs caused by the violent intrusion on the window or for which repair must be paid.
Damage caused by tap water / pipe breakage
A pipe breaks, whereupon water can flow unhindered into your residential building. This will damage furniture and appliances. To locate and eliminate the leak on the pipe, hire a craft company. The policy covers costs incurred by the water damage as well as those for the craft business.
Damage caused by fire
Due to a technical defect, your PC will catch fire. It creates a fire that attacks and destroys more inventory. The fire department extinguishes the fire, which leads to a consequential damage from extinguishing water. The household contents insurance covers both the damage caused by the fire, as well as the consequential damage caused by the work of the fire department and other costs for cleanup.
Damage caused by storm
A violent storm tears bricks from the roof of your home. Through the resulting hole rain can penetrate unhindered, causing considerable damage to wood furniture. The insurance covers the resulting wetness damage.
What does home contents insurance pay in the event of damage?
If you do not have household insurance, you would have to pay for the costs in all cases mentioned. However, a corresponding policy will reimburse you for any costs you may have to replace damaged items. In most cases, damage usually does not threaten existence. According to the German Insurance Association, the average damage caused by fire is € 1,411, theft € 1,541, and tap water € 1,372. But even small sums burden the finances. Exactly this can be prevented with a household contents insurance, in that the insurer pays for incurred costs from the damage.
By the way, the insurance sum is decisive for the amount of the reimbursed costs. Recommended is a value between 650 and 750 € per square meter of living space. This results in a value with which you are usually well protected. This is important because in the case of underinsurance there is the possibility that the insurer cuts benefits in the event of damage. If, for example, he calculates an underinsurance of your inventory of 20 percent, he can also reduce the payments for damage incurred by 20 percent. For this reason, always make sure that you agree to a household insurance with so-called under-insurance waiver. This always pays the entire damage and not only proportionately, if the household is underinsured.
Conclusion: A household insurance is necessary if you want to protect your belongings
While liability insurance covers self-inflicted damages, home insurance covers costs for damages the causes of which you can not usually influence. These include, for example, a storm damage or such by theft, pipe break or the like. In all these cases, you may seek financial support from the insurer for the replacement or manufacture of the items. The conclusion of a household insurance is therefore necessary for those who want to protect their household financially against various risks.