Protecting Your Domicile from Flame Disaster: A Guide to Home Fire Insurance Coverage
In the event of a house fire, a comprehensive fire insurance policy offers valuable protection for homeowners. This insurance typically covers damage to the dwelling itself, including the structure, walls, roof, floors, built-in appliances, and plumbing systems. It also extends to other structures on the property such as detached garages, fences, and sheds, usually under a separate limit of around 10% of the dwelling coverage.
Personal property like furniture, electronics, clothing, and jewelry are also covered, up to specified limits. Additionally, loss of use coverage (Additional Living Expenses) helps pay for temporary housing, meals, and related costs if the home becomes uninhabitable due to fire damage. Some policies also pay for debris removal and water damage from firefighting efforts.
The cost of fire insurance for a house varies based on several factors. The type of policy and coverage limits, location of the home, home characteristics, claims history and credit score, and availability of insurance all play a role in determining the premium. In high-risk areas, homeowners might need to purchase more expensive FAIR Plan insurance, which covers hard-to-insure homes but typically has higher premiums.
Leading insurance companies may offer specialized wildfire hazard assessments, proactive risk mitigation assistance, and extended coverage options to address risks, especially in high-risk areas. For raw building fire insurance, insurers calculate the premium based on the total cost of the construction project, with policies usually lasting 24 months, though shorter durations are also available.
Construction performance insurance is also recommended, as it provides protection against financial losses due to adverse weather conditions, vandalism, or material defects. Once the building is completed and the new owner has moved in, the building insurance takes over further insurance protection.
For household contents insurance, you can expect to pay around 85 € per year for a 100 square meters of living space. Permanently attached interior objects are covered by the included fire insurance in the building insurance. Fire insurance was mandatory for homeowners in some German states until 1994.
The fire insurance for a house covers damage caused by fire, explosion, lightning, and the impact of guided flying objects. The building insurance with fire protection covers the costs of repairing damage caused by the fire, including rebuilding the building in the worst-case scenario. The cost of building insurance with fire protection depends on several factors, including the state of structural fire protection measures, location, type of construction, equipment, and the insurance sum.
Photovoltaic, solar thermal, geothermal, and heat pump systems must be insured separately due to their high value and potential risks. Raw building fire insurance also covers consequential damage from smoke or fire-fighting water. Objects attached to the building's exterior, like antennas or awnings, are usually covered free of charge or for an additional fee.
Intentional arson by the insured is not covered by the fire insurance for a house. Raw building fire insurance is often free if you conclude building insurance for the property after completion. The value of 1914 does not play a role in the fire insurance for your house. The annual construction price index published by the Federal Statistical Office can be used to adjust this value to determine the new construction value for the current year.
For everything else (furniture, clothing, electrical appliances), you need an additional household contents insurance. If your construction project is delayed or the total costs change, you should inform your insurance company immediately to avoid losing your insurance coverage. For existing residential buildings, fire insurance is part of the building insurance. Each individual can decide whether to insure their house or apartment in case of a fire since 1994.
In addition to a fire insurance policy, homeowners should also consider taking out constructor's liability insurance to protect against personal and property damage on the construction site. Raw building fire insurance covers all building materials stored on the site that have been damaged by the fire. If the fire is due to gross negligence, the insurer has the right to reduce the fire insurance benefits.
For a new detached house in Hamburg with 140 square meters, you can expect to pay at least 120 € per year for building insurance with fire protection. The cost of household contents insurance depends strongly on the value of your household contents and the insurance sum you set accordingly. As a rule of thumb, you can calculate with 500 to 750 € per square meter of living space.
A counsellor specializing in home insurance may advise that homeowners in high-risk areas consider purchasing extended coverage options for wildfires. During a sports event, a counsellor could provide advice on insuring valuable sports equipment while participating in outdoor activities.
