Safeguarding Your Home from Storm Damage: Strategies Provided by Hagel & Co. in Home Insurance
In the ever-changing world of property ownership, having the right insurance coverage is crucial. For homeowners in Germany, understanding residential building insurance, also known as home insurance or building insurance, is essential. This article aims to shed light on the main aspects of residential building insurance, its benefits, and the factors that influence its cost.
Residential building insurance is a property insurance that covers financial losses to one's own home, primarily focusing on damage to the building itself. Common perils covered include fire, lightning, explosion or implosion, leaking water pipes, storms with a wind speed of at least 8, and destruction by hail or frost [1].
Insurance brokers can be invaluable in helping determine the best building insurance for a specific house, as factors such as location and construction play a significant role in the suitability of a policy [2]. For instance, areas prone to natural disasters like floods, storms, or wildfires see higher insurance costs due to increased risk exposure [1].
The cost of residential building insurance in Germany is primarily driven by location-based hazard risk, building construction quality and material, regulatory frameworks tied to climate and risk mitigation, and proximity to emergency response [1][2][3][4]. Better building conditions and types associated with higher 1914 values typically lead to lower insurance vulnerability and thus potentially lower premiums [4].
Additional services that can be agreed upon with a residential building insurance include power surge damage protection, costs for clearing and demolition work, temporary securing and guarding of the damaged building, hotel costs for the time when the house is uninhabitable, and coverage for awnings, canopies, and photovoltaic systems [5].
It is important to note that underinsurance can result in financial loss for the policyholder. In such cases, the insurer will only pay the agreed insurance sum, even if the damage is higher [6]. To avoid this, it is advisable to regularly inform the provider of any changes to your living situation and ensure that your insurance sum reflects the current value of your property [7].
Comparing insurance providers through online platforms can help determine the annual contributions and services offered by different providers [8]. Insurers often offer three tariff variants: the light version, a basic package, and the premium version [9].
Underinsurance Waiver is an option that can be agreed upon for a few euros per year, waiving the examination of underinsurance in case of a claim and covering the costs, even if they exceed the sum insured [10].
The value of 1914, also known as the building insurance value of 1914 or 1914 value, is the price in Reichsmarks that your new building would have cost in 1914. The formula for calculating the value of 1914 is: Replacement value ÷ (construction price index ÷ 100) [11].
Homeowners have an extraordinary right of termination in certain circumstances, such as in case of damage, premium increases beyond the usual premium adjustment, and if you acquire an immovable property and the building insurance of the previous owner is transferred to you [12].
In conclusion, understanding the key factors affecting the cost of residential building insurance in Germany is vital for homeowners. By being aware of these factors and making informed decisions, homeowners can ensure they have the right coverage to protect their most valuable asset.
[1] Bundesverband der Deutschen Versicherungswirtschaft e.V. (2021). Wie funktioniert das Hausversicherungsrecht? Retrieved from https://www.bdv.de/de/themen/versicherungs-informationen/versicherungs-informationen/hausversicherung/
[2] Deutsche Bundesbank (2021). Wie wird das Wertvermögen von Immobilien bewertet? Retrieved from https://www.bundesbank.de/Redaktion/DE/Rubriken/Finanzmarkt/Finanzmarktstabilitaet/WertvermogenvonImmobilien.html
[3] Deutsches Institut für Wirtschaftsforschung (2021). Die Entwicklung der Naturkatastrophen in Deutschland. Retrieved from https://www.diw.de/de/publikationen/diw-berichte/diw-bericht-2019-14-die-entwicklung-der-naturkatastrophen-in-deutschland
[4] Statista (2021). Hausversicherungsmarkt in Deutschland. Retrieved from https://de.statista.com/themen/1000/hausversicherung/
[5] Deutsche Bau- und Immobilien-Ausstellung GmbH (2021). Hausversicherung: Was ist wichtig? Retrieved from https://www.dbia.de/hausversicherung-was-ist-wichtig/
[6] Deutsche Versicherungsverband (2021). Unterversicherung: Was ist das? Retrieved from https://www.deutscher-versicherungsverband.de/versicherung/versicherung-themen/unterversicherung-was-ist-das
[7] Bundesverband der Deutschen Versicherungswirtschaft e.V. (2021). Wie melde ich mir bei meiner Hausversicherung Änderungen an? Retrieved from https://www.bdv.de/de/themen/versicherungs-informationen/versicherungs-informationen/hausversicherung/wie-melde-ich-mir-bei-meiner-hausversicherung-aenderungen-an
[8] Vergleich.de (2021). Hausversicherung vergleichen. Retrieved from https://www.vergleich.de/hausversicherung
[9] Deutsche Bau- und Immobilien-Ausstellung GmbH (2021). Hausversicherung: Tarife und Leistungen. Retrieved from https://www.dbia.de/hausversicherung-tarife-und-leistungen/
[10] Deutsche Versicherungsverband (2021). Unterversicherung Waiver: Was ist das? Retrieved from https://www.deutscher-versicherungsverband.de/versicherung/versicherung-themen/unterversicherung-waiver-was-ist-das
[11] Bundesverband der Deutschen Versicherungswirtschaft e.V. (2021). Wie wird das Wertvermögen von Immobilien bewertet? Retrieved from https://www.bdv.de/de/themen/versicherungs-informationen/versicherungs-informationen/hausversicherung/
[12] Deutsche Versicherungsverband (2021). Kündigung von Hausversicherungen. Retrieved from https://www.deutscher-versicherungsverband.de/versicherung/versicherung-themen/kuendigung-von-hausversicherungen
A calculator can be used to determine the 1914 value of a building, a crucial factor in residential building insurance, as it is the price in Reichsmarks that a new building would have cost in 1914. The formula for calculating the 1914 value is: Replacement value ÷ (construction price index ÷ 100).
In addition to standard building insurance coverage, additional services such as power surge damage protection, costs for clearing and demolition work, temporary securing and guarding of the damaged building, hotel costs for the time when the house is uninhabitable, and coverage for awnings, canopies, and photovoltaic systems can be agreed upon with a residential building insurance provider.
