What is property insurance

Service portal Baden-Wuerttemberg

There is a whole range of insurance policies for owners of apartments and houses - there is a wide choice and there are numerous providers. Virtually all risks can be insured against if you so wish.

Tip: When deciding which insurance to take out and what risk you are willing to take yourself, it is advisable to make the following considerations:

  • What is the worst case scenario that you have to suffer?
  • How high are the respective amounts insured for the individual damage areas?
  • How much is the annual contribution with or without a deductible?

Homeowners Insurance

As a property owner, you should take out homeowners insurance to financially protect against damage caused by fire, explosion, tap water, frost, lightning, storms and hail. This is what is known as linked insurance, in which the premiums are calculated individually for each risk. In addition to the house, garages, carports and fences are usually insured. If you live near a river, reservoir, rainwater retention basin or other body of water, you should also consider protection against damage from landslides, floods and floods. But even a residential area on a slope can be affected by landslides and floods after heavy rain. It is therefore a good idea to consider the respective situation and the associated risks. If this is an option for you, make sure that the so-called natural hazards are also insured in the residential building insurance.

Note: Homeowners who have put a mortgage on their house are required by the credit institutions to insure the building.

Household insurance

Household contents insurance covers damage to household items caused by fire, storms, tap water damage, explosions, as well as burglary, theft or vandalism. All household items such as furniture, carpets, clothing, appliances and the like are insured. Cash and securities are also insured, but only up to a certain maximum limit.

Danger: The property of sub-tenants is excluded from the insurance. In addition, so-called due diligence requirements are laid down in many insurance contracts. For example, if you switch on your stove and leave the apartment, in the event of damage, the insurance may not cover the damage incurred.

To determine the sum insured, you need to estimate the value of your household effects. You can do this yourself or together with your insurance company. Some insurance companies also offer a flat rate calculation, which sets a flat rate per square meter and which is used to determine the sum insured for the entire apartment.

Tip: Before you decide to take out household contents insurance, you should compare the offers from different insurance companies, as there can be differences in the amount and the amount insured.

Remember that when you move to a new - possibly larger - apartment, the scope and thus also the sum insured of the household contents insurance should be adjusted so that you do not have to find underfunding in the event of damage. Insurance companies have calculation tables for this purpose.

The insurance coverage of your home contents insurance is transferred to the new apartment for the duration of the move. During the move, there is insurance coverage in both apartments. However, it expires in the old apartment no later than two months after the start of the move. So report your new address to your insurance company as soon as possible. The previous contract will be changed and adapted if necessary.

Liability insurance

If someone is harmed by you, your house or property, liability insurance intervenes. How these risks are covered depends on the insurance company, partly through private liability insurance (single-family home) and partly through special home and landowner's liability insurance (apartment building). In addition to property and financial losses, damage to the health and life of people is also insured.

Conceivable cases would be, for example, that someone is injured by a falling roof tile or a rotten tree falls over and causes damage on the neighboring property. Or you do not comply with your evacuation obligation in winter and someone falls and injures himself on the sidewalk in front of your house.

Housing liability insurance

Liability insurance for your rented apartment regulates the damage that others suffer from your property. Frequent cases of damage are incorrectly laid electrical lines, inadequate water installations, defective radiators or improper ceiling constructions.

The liability risks of the landlord of a condominium are often underestimated. For example, the Apartment Owner Act provides that the landlord (individual owner) is liable for damage that his tenant culpably inflicts on other owners or the community of apartment owners.

However, you can also be held liable if you fail to comply with your traffic safety obligations (e.g. the obligation to clear in winter or parts of the external plaster come loose and fall off).

Legal protection insurance

As a house or apartment owner or as a landlord, legal expenses insurance can make sense because it cannot be ruled out that you will have to conduct a legal dispute, even if you are determined to avoid it.

Neighborhood disputes are one of the most frequent cases in which the courts are involved.

As a landlord, you may have to enforce claims against your tenants. Your tenant can sue you or sue you for violating traffic safety obligations. Your insurance company will then reimburse you for legal and court costs in accordance with the agreed insurance benefit.

Rent loss insurance (rent loss insurance)

If, after a fire, lightning strike, explosion, tap water, pipe burst or storm, the rented living space cannot be occupied temporarily due to repairs, you will lose rental income. To compensate for this, you can take out rental loss insurance, which is sometimes offered in addition to homeowners insurance. The loss of rent will be compensated up to the point in time up to which the rooms can be used again, but usually up to a maximum of twelve months after the occurrence of the insured event.

Before taking out insurance, weigh the risk and the amount of a claim against the annual insurance premiums.

If you are unsure about which insurance to choose, seek advice from experts - for example from the consumer advice center in Baden-W├╝rttemberg.