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Household contents insurance: the cheapest basic rates and what consumers should be aware of

2022-06-26T21:07:59.251Z

Household contents insurance: the cheapest basic rates and what consumers should be aware of Created: 06/26/2022, 22:58 By: Matthew Schneider Home contents insurance covers a lot and is therefore recommended for almost everyone. (symbol photo) © Elmar Gubisch via www.imago-images.de From a bicycle stolen from the basement to a house fire: household contents insurance covers a lot and is theref



Household contents insurance: the cheapest basic rates and what consumers should be aware of

Created: 06/26/2022, 22:58

By: Matthew Schneider

Home contents insurance covers a lot and is therefore recommended for almost everyone.

(symbol photo) © Elmar Gubisch via www.imago-images.de

From a bicycle stolen from the basement to a house fire: household contents insurance covers a lot and is therefore recommended to almost everyone.

But there are big price differences.

Munich – Let a candle burn in the wrong place – and there can already be a room fire.

After that, the interior is usually for the bin, the damage is in the thousands.

Home contents insurance provides security - but many tariffs are too expensive,

Finanztest

has determined.

Couch, TV, wardrobe: most people buy their household effects together piece by piece.

Over time, this adds up to thousands of euros in value.

Home insurance protects you from many types of damage.

But despite comparatively small annual contributions, the wrong tariff can cost a lot of money.

For their June issue, the experts from

Finanztest

determined what is important when it comes to protection.

What is household contents insurance for?

According to the

financial test

, household contents insurance helps with damage caused by burglary, robbery, fire, mains water, storm and hail.

All loose objects in the apartment are included – i.e. everything except the building itself.

The insurance always reimburses the current value of the destroyed items, i.e. the sum that a new purchase of the same quality costs.

According to the

financial test

, the sum is usually around 10 percent higher.

However, this does not apply to underinsurance – more on this below.

Household contents insurance: how are the policies calculated?

How high the annual premiums are depends on the sum insured, i.e. the value of the insured assets.

The financial experts give an example: The entire household is worth 50,000 euros, but is only insured for 40,000 euros.

This is known as underinsurance.

In the event of damage, only 80 percent of the current value is reimbursed.

To stay with the picture: If jewelry worth 6,000 euros is stolen with 80 percent coverage, the insurance company only pays 4,800 euros.

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Such inconveniences can be eliminated with the so-called underinsurance waiver.

These flat rates insure a certain sum per square meter - usually 650 euros, sometimes more.

Another example from a

financial test

: the sum insured for the interior of a 100 square meter apartment would then be 65,000 euros.

Here, apartment owners have to weigh up whether the sum reflects the actual value of the facility.

If it is lower, you will not be reimbursed enough in the event of a claim; if it is too high, you will pay unnecessary annual premiums.

According to

the financial test

, another contract alternative is living space tariffs.

Here, a maximum compensation is determined based on the number of square meters of the apartment - sometimes of 250,000 euros or more.

All tariffs usually include a reimbursement for hotel costs.

How do you prove damage?

According to the

financial test

, receipts, bank statements, receipts, guarantee certificates, repair bills or photos of the items are often sufficient.

Is there a catch?

Naturally, a policy only moves within the narrow contractual framework.

Most insurance policies do not cover natural hazards, including natural hazards.

According to the

financial test

, these include flooding, heavy rain, high water, snow pressure, avalanches and earthquakes - or backwater from the sewage system.

The financial experts recommend this building block above all if you live on the ground floor or store a lot in the garage.

At ten to 20 euros a year, it can be had cheaply.

Valuables such as jewelery or cash are another pitfall – they are often only covered by 20 percent of the sum insured.

If necessary, a higher damage amount should be chosen.

Also important: Most insurance policies only cover damage caused by fire.

Traces of smoke and soot are not included, but can make the apartment uninhabitable.

What applies in the case of negligence?

A candle left standing, the terrace door not locked - an accident can easily happen.

According to “Finanztest”, old contracts in particular provide for cuts here – but that doesn’t have to be the case.

Many insurance companies now exclude reductions.

It's worth paying attention to when closing.

Are vehicles included in household contents insurance?

Cars and bicycles are usually only protected if they are parked in buildings such as bicycle cellars or multi-storey car parks.

If the bike is stolen on the street, that usually doesn't help much.

The bicycle insurance module often costs between 30 and 50 euros a year.

According to the

financial test

, however, you can often select a part of the sum insured for this, around two percent.

Which tariff is the best?

That can't be said in general, because the services and additional modules are so different.

The test calculator from

Finanztest

at test.de/vergleich-hausratversicherung can provide orientation.

The individual requirements can be checked here.

The five cheapest basic tariffs can be found in the adjacent table - but for the example location Jena, the cheapest in Germany.

Rates may vary by region, but it's a good guide. 

Offerer

tariff

Annual fees (EUR) for Jena without other natural hazards

Ammerlander

Comfort

57.00

Docura

begin

52.00

friday

household items

58.00

MVK

Premium

58.00

Waldenburger

Premium

54.00

(Source: financial test)

Source: merkur

All news articles on 2022-06-26

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