What does household insurance mean?
Household insurance (also known as content insurance) reimburses you for the loss and/or damages to things that are normally kept in your home and belong to you: Clothes, books, electronic devices (laptop, phones, TV etc.), furniture, bikes, valuables and other personal belongings. Items that you don't own, but that do belong to your household, are excluded. This could be a built-in kitchen owned by your landlord or the furniture in a furnished apartment.
What does it cover and how much does it cover?
The minimum coverage of every basic plans includes:
The coverage sum is the maximum amount that the insurance company will pay you in case of damages and should reflect the total worth of your household.
How do I choose the right coverage sum?
Naturally, you don't keep every receipt of every item you once bought. That's why insurance companies usually calculate 650 € per square meter of living space as a default coverage sum. For an "ordinary" household, this is usually enough.
However, the default coverage sum is not mandatory. So if you feel like this default coverage sum is either too high or too low, you should calculate the value of your household yourself. Just keep in mind, that your estimation should be as realistic as possible because the coverage sum is a) the maximum amount of money you will get back in a claim and b) the main driver of the premium.
What happens if i choose a coverage sum that is too high or too low?
When choosing a coverage sum higher than the value of your household, nothing "happens". However, the price for the insurance will rise. So choosing a coverage sum higher than the default coverage sum only makes sense if you have many expensive personal belongings or valuables that you need to have insured.
If you chose a coverage sum lower than the default coverage sum, the insurance has, in case of a claim, the right to check whether the insured sum actually equals the value of your insured household goods. If it turns out that your contents are more valuable than stated with the insured sum, this will result in a proportionally smaller pay out for you. So don't be tempted to underinsure!
An easy example: If your insured sum is 50.000 €, but the actual value of your household is 75.000 €, you have only covered 2/3 of your belongings. Consequently, in the event of a damage, only 2/3 of the actual loss will be paid out. So if the damages are 20.000 €, you would only be reimbursed 13.333 € (= 20.000 € x 2/3).
Waiver of underinsurance:
If you agree to the default coverage sum a waiver of underinsurance applies in case of a claim. This means that your insurance won't check whether the insured sum actually equals the value of your insured contents and will simply pay the money agreed with the coverage sum.
Do I have to keep every receipt now?
No. However, the insurance can ask for a proof of ownership. If your 2.000 € laptop gets stolen and you make a claim, the insurance company has the right to ask you to proof that you actually owned this exact laptop. For everything that has a high value (art, jewellery, items made of gold & silver) you need to keep the receipt. Ideally you also have pictures showing the item in your home. We strongly advise you to store images/receipts digitally in a cloud, so you're safe in case of a fire in your apartment!
How do I choose the right apartment size?
Your living space is the base area of all rooms in your apartment or house. Excluded from the calculation are stairways, balconies, terraces, loggias, storage rooms and basements, as long as they are not used for residential or hobby purposes. The best way to find out what is or isn't considered living space is to check your rental or purchase contract or your construction documents. Although the actual space is not counted as living space, your household goods in your basement, attic, home office, laundry room, balcony, terrace etc. are still covered by the insurance.
What are valuables?
What is valuable to you is probably different to the insurance's definition of valuables. For the insurance company valuables are: cash, money stored on chip cards or money cards, deeds including saving accounts and other securities, jewellery, gems, stamps, coins, medals, all things made from gold and platinum, hand-woven carpets and tapestry as well as art. Designer clothes, handbags as well as antique furniture are not counted as valuables!
Basic vs. premium plan: How do I find the right one?
Most household insurances come in a basic plan and can then be expanded by a variety of add-ons. Depending on your situation it might make sense to increase covering by adding one of the following add-ons:
Other important benefits to consider:
How much money will I get?
If something is stolen or broken, your household insurance usually compensates you for the new replacement value (= how much it would cost to buy a brand-new replacement for the item of equal quality).
Who is insured?
Everyone officially registered at your address is part of your household (partner/kids/au-pair) and therefore his/her belongings are covered as well. If you are living in a shared flat, the main tenant needs to be the policy holder and the coverage sum should reflect all of the belongings of all the members of the shared household.
Runtime – 12 Months:
Your contract will be automatically renewed for another year, if not cancelled 3 months prior to renewal date. However, should you leave Germany for good, all you need is to show your official "Abmeldung" in order to end your contract then and there.
What isn't covered? The most important exceptions:
