Up to a 500% variation in costs for homeowner's insurance for household items.
A household contents insurance policy aids in case of fire, water damage, burglary, or unfortunate incidents. Warentest analyzed 253 policies from 89 providers. The price differences for similar policies are massive. Expensive policies can cost up to six times more than affordable ones.
In general, the more valuable your home decor, the more advantageous it is to have a household contents insurance policy. After a theft, for example, the insurance pays for replacement costs of stolen items and covers window and door repairs. It also protects from other mishaps like fire, robbery, lightning, water damage, storms, and hail. Some addons can be bought for additional costs, including glass breakage, bike theft, and inclusion of natural disasters. There are no legal obligations for having household contents insurance. They enable homeowners and tenants to secure their belongings within their homes.
People looking for this kind of insurance should compare prices and benefits. A recent "Finanztest" analysis examined 253 policies from brands like Allianz, ARAG, HUK24, Signal Iduna, Schleswiger, and Württembergische.
The premiums and benefits for these policies vary significantly. Expensive tariffs are up to six times more expensive than cheap ones. Affordable policies with full coverage start at just 38 euros. The most expensive policy with similar coverage costs 229 euros. Major factors affecting the insurance cost are location and the value of your belongings. The higher the chances of burglary, the more expensive the household contents insurance.
Avoid gross negligence
Warentest recommends policies that fully exclude gross negligence. Insurers should not be able to reduce compensation if a customer has acted carelessly. Some providers often use this accusation against customers. It may be enough for a window to be slightly ajar, a door locked only once, or a stove not completely switched off. Policyholders who have had this insurance for a while should check their terms, as gross negligence may not be covered or only partially covered in some cases.
We advise the "Top" policy from insurer Schleswiger, which doesn't require natural hazard coverage. It costs 38 euros at the most affordable location (Ingolstadt), and 52 euros if you choose to add natural hazards. In the most expensive city (Bremerhaven), the price is 69 and 83 euros with and without natural hazards respectively.
The "Silver" policy from Alteos is affordable, with annual premiums of 51, 80, 74, and 104 euros at the 4 locations. The "Premium T22" from Degenia is another option: 43, 70, 91, and 118 euros for the four different locations.
Avoid underinsurance
Irrespective of these details, policyholders should review the value of their household items every few years and adjust the sum insured accordingly. Household contents are all movable items like furniture, appliances, clothing, and valuables, including money. Otherwise, there might be a risk of underinsurance. During a claim, the insurance company reduces the claim amount based on the percentage undervalued, regardless of how much damage reported. For instance, if the household contents are insured for up to 50,000 euros, but the real value is 100,000 euros, only 50% of the claim will be settled due to underinsurance.
To estimate the worth of your household contents, you can either use a total sum based on the living space or individually calculate. Insurers typically suggest estimating 650 euros per square meter. However, if you have a small apartment with many priceless items or a large house with little furniture, it's smarter to assess the value individually.
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- Residential burglaries are a common cause of costly claims for household contents insurance, and homeowners should take necessary precautions to deter theft, such as installing security systems or consulting with an advisor.
- Consumers should be aware that some household contents insurance policies do not cover the full cost of replacement for stolen items in the event of a residential burglary, and it is important to review policy terms carefully to ensure adequate coverage.
- In response to an increase in residential burglaries in some neighborhoods, local law enforcement have launched initiatives to increase police presence and offer safety tips for homeowners.
- Insurances may not cover theft from unlocked apartments, and it is recommended that consumers invest in additional security measures to protect their belongings and avoid claims due to criminal activity.
Source: www.ntv.de
