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Important insurance policies for your home

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Home insurance: The most important insurance policies for your home

Your home is likely the biggest investment of your life. Damage to your property can not only cause major problems, but in the worst-case scenario, also lead to financial difficulties. The right insurance coverage is crucial to avoid financial hardship in an emergency. Here you'll learn how to optimally protect your home and which insurance policies are absolutely essential for your house.

Home insurance: The most important protection for your home

Homeowners insurance is essential for every property owner, as it protects against the financial consequences of property damage. It covers the entire building and all permanently installed components. Outbuildings such as garages and carports can also be included in the policy. This insurance ensures that in the event of damage, you receive the necessary funds to carry out repairs or, in the case of total loss, to rebuild the building to the same standard and quality.

The insurance covers damage caused by fire, tap water, storm, hail, and vandalism. The coverage can also be extended with natural hazard coverage, which is advisable for many buildings. This protects you against floods, heavy rain, backflow, earthquakes, landslides, avalanches, snow pressure, subsidence, and even volcanic eruptions.

Expert tip: Increasing extreme weather events
In recent years, extreme weather events such as floods, landslides, and tornadoes have increased in Germany. Therefore, natural hazard insurance is now essential. Property owners should definitely consider this extended protection.

Insurance coverage during the construction phase
If you're building a house, you shouldn't wait until it's finished to insure it. Even during the construction phase, there are risks that can jeopardize the project. Fire insurance for buildings under construction protects you against fire damage to the unfinished building. Many providers offer home insurance policies that include fire insurance for buildings under construction free of charge until the house is completed.

Liability insurance for property owners

Home and property owners should absolutely take out liability insurance, as they are liable for damages suffered by third parties due to their property or on their land. Examples include a loose tile damaging a vehicle during a storm, or a pedestrian injured on an uncleared sidewalk. Owners are obligated to ensure that no hazards emanate from their property.

Landlords and owners of undeveloped land require special homeowner's liability insurance. Those who live in their own property are generally covered by personal liability insurance, provided it also covers damages caused by their own property.

Owners of oil tanks should also check whether their personal liability insurance covers damage caused by a leak in the heating oil tank. Many liability insurance policies cover damages resulting from oil entering groundwater or bodies of water. Landlords, in this case, need separate water pollution liability insurance. A good personal liability insurance policy not only protects your home but also against claims for damages resulting from personal injury, property damage, or financial loss.

Builder's liability insurance: Insurance coverage for building owners
Homeowners have a special insurance need, as they are liable for all incidents related to their construction site. Regular personal liability insurance usually doesn't offer sufficient protection, since renovation work is only covered up to a certain construction cost. Anyone building a house should take out separate homeowner's liability insurance, which must be in place before construction begins. Liability begins as soon as an architect is commissioned or a contract is signed with a construction company.

For minor alterations or renovations, personal liability insurance may be sufficient in some cases. Our BK advisors will review your policy and determine whether the insured sum is adequate.

Home contents insurance

While building insurance protects the house itself, contents insurance protects its contents. It covers all furnishings such as furniture, electronics, textiles, and valuables against risks like fire, water damage, storm, hail, burglary, and robbery. Garden furniture, awnings, and bicycles can also be included in contents insurance.

In the event of damage, the household insurance replaces damaged, destroyed or lost inventory at its new value.
As with building insurance, household contents insurance can also be extended with additional coverage for natural hazards. This is particularly useful for residents of areas threatened by floods, earthquakes, avalanches, or landslides.

Insurance coverage for photovoltaic systems

Anyone who has installed a photovoltaic system on their roof should properly insure this valuable investment. This protection can be obtained either as an add-on to their homeowner's insurance or through a separate policy for the house. Depending on the policy, photovoltaic systems are insured against various risks such as storms, hail, fire, snow load, and power surges. It is particularly important to ensure that damage caused by animal bites is also covered, as martens frequently gnaw on cables.

Term life insurance for loan debt

It's important not only to protect your home, but also your family – and that's where term life insurance comes in. Those who buy or build a house often take out a mortgage that has to be repaid monthly for years. If a family member's income is lost during this time, it can lead to serious financial difficulties.

Term life insurance ensures that surviving family members are not burdened with a mountain of debt if the family's main breadwinner dies. In the event of death, the insurer pays the agreed sum insured, allowing the remaining debt to be paid off in full or in part. The sum insured can either remain constant throughout the policy term or decrease in line with the outstanding debt.

If both partners contribute to the household income, they should protect each other with a term life insurance policy.

Is glass insurance for the house worthwhile?

Stiftung Warentest often considers glass breakage insurance unnecessary, and some experts also deem it not particularly useful. Nevertheless, it's important to remember that glass insurance costs only a few euros per month – in some policies even less than five euros*. If, for example, a patio door is damaged due to carelessness, repair costs can quickly reach up to 1,000 euros. For a conservatory, the costs can even reach several thousand euros.

Glass insurance covers both building glazing and furniture glazing. This means it covers breakage of glass tables, as well as damage to windows, glass doors, or shower enclosure glass. In such cases, this relatively inexpensive insurance can be quite advantageous. Therefore, glass insurance should not be dismissed outright as useless.

*Depending on the living space of the insured property

Our advice – How to properly insure your home

If you're unsure which insurance policies you already have for your home, which ones you might want to add, or which you could cancel for better terms, our experts are here to help. In our insurance check, we'll answer all your questions and help you find the best possible coverage for yourself, your family, and your home. Our home insurance advisors are ready to assist you. Get in touch!