Protecting Your Home from Storm Damage: A Guide by Hagel & Co for Home Insurance
A home is a significant investment, and protecting it is crucial. In Germany, building insurance, also known as Wohngebäudeversicherung, is a property insurance for homes that covers financial losses to the building itself. This article will delve into the key factors affecting the cost of building insurance in Germany and what it typically covers.
Factors Affecting the Cost of Building Insurance
- Building Size and Type: Insurance premiums often depend on the size of the property, typically measured in square meters, and the type of building materials used for walls, roofs, and basements. Larger buildings generally incur higher premiums.
- Coverage Scope: The extent of coverage for the building structure versus optional contents or natural hazard coverage affects cost. Comprehensive coverage, including protection against natural hazards like floods or earthquakes, raises premiums significantly.
- Natural Hazard Risk: The level of risk from natural hazards in the building’s location impacts premiums. Areas with higher exposure to natural disasters attract higher costs for hazard coverage.
- Replacement Value Basis: German building insurance typically reimburses the original (replacement) value of the building rather than its depreciated present value. This can affect premiums based on current rebuilding costs.
- Optional Add-Ons: Adding coverage for natural hazards or other specific risks increases the cost. In some countries, optional add-ons for hazards account for 30-80% of total insurance costs.
- Local Risk Factors: Factors such as regional crime rates, local building codes, and proximity to emergency services might also influence the insurance cost.
- Market Conditions and Insurer Pricing: Competition among insurers and general market conditions can influence pricing trends.
What Building Insurance Covers
Building insurance generally covers the building itself, permanently laid floors, air conditioning and central heating systems, sanitary facilities, outbuildings and installations. It covers damage from leaking water pipes, fire, storm, or hail, and can also insure against power surges or floods.
However, it's essential to pay close attention to what is defined as an outbuilding and fixture, as disputes often arise over what actually belongs to the house. Insurers usually do not cover damage caused by groundwater rising.
Other Considerations
When signing a contract, agreeing to a Co-insurance Waiver can help avoid disputes over the division of the insurance sum in case of damage. If you are absent for a longer period, it's advisable to appoint someone to regularly check the condition of the house.
Negligence in caring for your property may result in reductions in insurance coverage or even loss of home building insurance. Factors such as who installed the inventory and the effort involved are also important. On the other hand, freestanding furniture, electronics, or clothing are typically covered by the contents insurance.
For buildings that are not yet completed, home insurance does not apply. During the construction phase, you should consider a construction performance insurance or a fire under-construction insurance. Informing your provider immediately about any renovations is important, as they increase the value of your property and thus the cost of your home insurance.
For the most accurate cost estimate, it is advisable to use insurance price comparison websites like Preisvergleich.de to compare specific building insurance plans tailored to your property characteristics and coverage needs.
Remember, the cost of building insurance varies greatly between providers and tariffs. The key is to find the right balance between comprehensive coverage and affordable premiums that suit your unique needs.
- Taking a test to compare the coverage and pricing of different sports equipment insurance policies before investing in any equipment could help you make an informed decision.
- Participating in sports that have a higher risk of accidents or damage to equipment, such as extreme skiing or high-impact sports like basketball, could lead to increased premiums for sports equipment insurance.
