What are the must-have insurances for homeowners in Germany? What type of damages do they cover? Are they worth it after all? Learn more in this post.
Owning a home in Germany is super expensive. An average German homeowner simply cannot afford to rebuild their home or replace everything in it if it gets accidentally damaged or completely destroyed.
Special insurances for homeowners in Germany can protect property owners against unexpected financial burdens.
With the right home insurance coverage, you’ll feel comfortable knowing that, in the event of a disaster, your home is protected.
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Must-Have Insurances for Homeowners in Germany
1) Homeowners insurance (Die Hausbesitzer–Wohngebäudeversicherung)
A homeowner’s insurance is a must for every property owner in Germany.
In its basic coverage, this insurance offers protection against the risks of fire, tap water and natural hazards (for example, storm and hail).
German homeowners insurance protects the real estate owners against the financial loss caused by property damage. In the event of damage, the entire building is insured. A homeowners insurance in Germany covers the following damages:
Homeowners insurance in Germany pays out after a destructive fire. In addition, there is compensation for costs due to extinguishing water and soot.
- Lightning, explosion or implosion
These events can mean a total loss of your property. A homeowners insurance covers these risks.
- Storm and hail
If your roof ever gets damaged by strong winds, a homeowners insurance finances the repair of the old one.
- Tap water leakage
Damage caused by water-carrying pipes and the associated equipment (radiators, washing machines and dishwashers, air conditioners and heat pumps) is covered in German homeowners insurance.
Damage caused by overvoltage as a result of a lightning strike is also insured in some homeowners insurance in Germany.
What happens if your house is completely destroyed?
If the house is completely burnt down in a fire, the insured homeowner gets a new, similar house financed at present-day costs – including the architect, construction and planning costs. The reimbursement of the new value is only paid if reconstruction is started within three years. Since a burnt-down house is not habitable, costs for rental replacement can also be insured.
How is the monthly premium of German homeowners insurance calculated?
Your monthly premium depends on the overall risk to be insured. The following factors play a significant role in the cost of homeowners insurance in Germany.
- the risks to be insured (fire, mains water, natural hazards)
- the type of construction (solid, timber frame, wood)
- the roofing (tiles, slate, roofing felt, thatch)
- the living space or the sum insured
- the type of use of the building (residential house, residential and commercial building)
- the location of the property
2) Homeowners liability insurance (Haus und Grundbesitzerhaftpflichtversicherung)
A homeowner’s liability insurance is just like personal liability insurance for the house: it covers damage caused by the ‘house’.
- If you live in the property yourself, your personal liability insurance will cover the damages to some extent.
- If you rent out a property in Germany, you will need an adequate homeowner’s liability insurance
Homeowners in Germany are personally liable for damages they accidentally and unintentionally cause to others. If someone sues you after getting injured in your home, proper liability insurance can ensure you won’t be paying their legal fees out of your pocket.
The homeowner is liable to compensate for damages such as
- a passer-by falls in front of the insured property due to frozen ice
- a visitor slips on the slippery floor of their home
- the ceiling lamp you installed yourself falls down and injures a visitor
You can insure your entire family – the spouse and underage or unmarried kids in one single policy.
Before you start looking for a new homeowners’ liability insurance in Germany, make sure to check whether you are already adequately covered by your private liability insurance.
3) House contents insurance (Hausratversicherung)
Home contents insurance allows homeowners and tenants to insure all movable assets, for example, furniture to clothing to electrical gadgets. This insurance covers damages caused by:
- Lightning, explosion or implosion
- Storm and hail
- Flooding and water leakage
- The insurance cover can be extended by additional contract elements, such as bicycle theft.
The household contents insurance in Germany pays for
- the replacement costs for stolen or irreparable items. This does not have match the original cost of the item. In the event of a claim, the insured person receives enough money to buy an equivalent item again at today’s prices.
- the repair costs for damaged articles.
- a reduction in value for damaged but still fully usable items.
Use the table below to calculate your house content insurance quote
Your home is your place to relax. A comprehensive insurance for homeowners in Germany can protect your home against theft, fire, lawsuits, weather damage and other covered losses. So, when you let your guard down, make sure you have a cover that provides protection when you need it most.
Do you have homeowners insurance in Germany? What insurances would you recommend? Let us know in the comments below!