Which insurance policies make sense for homeowners?

You finally want to fulfill your dream of homeownership and are planning to buy a house or apartment. While searching for a property, it's advisable to start thinking about some of the risks you'll soon face as a new homeowner. For example, how can you protect yourself in case your house is damaged by flooding, fire, or a burst pipe?

Of course, there are insurance policies for all kinds of damage. However, the question of which insurance you absolutely need, which is sensible, and which you can do without can only be answered on a case-by-case basis. Let's start with the insurance that every homeowner really needs.

The home insurance

It is considered the most important insurance for homeowners and covers the costs of repair or reconstruction in case of damage to the property, for example by: storm or hail, fire and mains water (burst pipes).

But beware! Depending on the policy, compensation is often excluded in cases of "gross negligence." Many damages, however, result precisely from such negligence, for example, a forgotten stovetop burner or a window left open during a storm. To still enjoy insurance coverage, a suitable policy must be chosen.

Even so-called natural hazard damage caused by disasters such as floods is not automatically covered by homeowner's insurance. It must be included as an extra component in the insurance contract.

Other insurance policies that are useful for homeowners

• Liability insurance: As the owner, you are liable for damages caused to third parties on your property. However, if you live in your property yourself, many of these damages are already covered by personal liability insurance. Additional homeowner's liability insurance is only needed in specific cases.
• Term life insurance: A property is usually financed with a large loan. This insurance allows you to protect your family in the event of your death, ensuring they are not left with a mountain of debt and forced to sell the property.
• Home contents insurance: This covers damage to your belongings caused by events such as burglary, storm and hail, fire, or water leaks. Different rates are available. Which one is right for you depends primarily on the value of your possessions.

There are several other types of insurance that homeowners might consider. Your real estate agent has extensive experience and can therefore provide expert advice on insurance matters. They will also know which risks are particularly relevant to your property and which can be disregarded.

Would you like to learn more about which insurance policies you should take out as a homeowner and what you should pay particular attention to in the contracts? Contact us! We'd be happy to advise you.

You can find more information here:

https://www.haus-wohnen.de/wissenswertes-zu-versicherungen

https://www.finanztip.de/wohngebaeudeversicherungen/

https://wohnglueck.de/artikel/versicherungen-hauseigentuemer-9113

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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