Building insurance: Is there a duty for the important protection?
- In Germany, the conclusion of a building insurance is not mandatory.
- However, at least one federal state wants to link its financial support after flood to the insurance protection.
- Before people decide to take homeowner insurance, they should first get an overview of many different offers.
In Germany, homeowners have no obligation to take out building insurance. Although the discussion about compulsory insurance, especially after severe flood damage, keeps cropping up, the government has not been able to agree on a mandatory hedge. However, Bavaria, for example, plans to link the payment of emergency aid to flood victims from July 2019 onwards . If the damage had been insurable, the federal state would no longer financially support victims.
Regardless of political debates around a duty for building insurance, every homeowner should deal with insurance coverage. If, for example, the home is damaged by a fire, the residents will incur high costs for the renovation or even the new building . Without financial security in the form of homeowners insurance, owners quickly reach their limits.
Secure important services of building insurance
A classic homeowners insurance pays for damage to your own home by fire, hail, storm from wind force 8, lightning, overvoltage and tap water . So homeowners are insured even if flooding, heavy rain and flood, they need additional insurance against damage. In addition, they should be careful to ensure that damage caused by gross negligence is covered and that the insurer pays, among other things, for demolition and cleaning costs, as well as hotel costs, if residents of a damaged house can no longer live there temporarily.
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Building insurance in the test: Many providers offer inexpensive top protection
According to a building insurance test by Focus-Money (04/2018), there are some insurers who offer very good value for money. To this end, the magazine commissioned 35 tariffs from 22 providers from the rating agency Franke & Bornberg with regard to the scope of services and the amount of the contribution. All rated homeowners’ insurance includes protection against natural hazards and must provide a minimum level of coverage. This includes, for example, that additional costs are covered by regulatory requirements and graffiti shops.
Cost of home insurance depends on many factors
The evaluation of the services contributed to 70 percent in the overall result of the investigation. The price for building insurance was 30 percent. For this, the testers calculated the annual fee for five different locations: Hannover, Munich, Berlin, Cologne and Hamburg.
Overall, two insurers achieve an outstanding result:
- “Residential Premium” by HDI
- “Optimal” from WGV
With the offers the costs vary depending upon place of residence between 238 euro and 360 euro per year. Another 14 tariffs are rated very good, including
- “Premium WFL” from media insurance,
- “Casa optimum” by degenia,
- “Premium” by Waldenburger,
- “Best Selection” by Janitos and
- “Comfort Vario” by Helvetia.
Tip: Depending on the location, design and age of your home, the contribution for your building insurance may vary. Therefore, the top offers can not always be transferred to your own situation. Meanwhile, there are different tariff calculator on the Internet, which help to conveniently compare the costs and benefits of many different providers for the home. The test winners can represent a good orientation.