A violent storm covers the roof, a burst pipe puts the house under water, a fire destroys parts of the building - in all these cases you protect yourself with homeowners insurance.

In addition to private liability insurance and household contents insurance, it is indispensable for homeowners: after a fire, but also due to water, storm or flood, the damage can quickly bring you to the limits of your financial resilience.

In the event of an emergency, you are only well protected if you have residential building insurance in your policy folder.

A residential buildings insurance policy first protects your building itself, as well as the associated garages and other outbuildings such as carports, garden sheds or tool sheds that are designated in the insurance contract. All parts that are permanently connected to the building, such as built-in kitchens or cupboards, are also insured.

Building accessories are also insured
As a rule, insurance cover also includes accessories that serve residential purposes or the maintenance of the residential building - for example, tools, firewood, awnings, alarm systems, flower boxes or radio aerials.

The extent to which the garden, the swimming pool or the modern water treatment plant is also insured depends on the respective insurance conditions and can sometimes even be negotiated with the insurer.

The house and its accessories are protected in the building insurance against fire, mains water damage such as burst pipes, storm, lightning, hail and, depending on the scope of the contract, also against natural events such as floods, avalanches or earthquakes.

The building insurance compensates for damage up to the agreed sum insured if a violent storm covers the roof, rain penetrates the masonry due to storm damage or a fire causes expensive mischief.

Additional benefits depending on the contract
Depending on the terms of the contract, other benefits may be included in the insurance cover or be insured as well: the removal of graffiti, necessary clean-up and demolition work after a loss, transport and storage costs, hotel costs if the building is uninhabitable, loss of rent for rented rooms, return travel costs from holidays after serious insured losses or expert fees incurred in assessing the loss.

Some companies even reimburse expenses for the removal of pipe blockages. Which of these additional benefits are also insured is regulated in the tariff conditions of the individual insurance companies.

Every homeowner should protect themselves against the most important risks with buildings insurance. After a fire, but also due to burst pipes, storms or hail, the damage can be so great that owners quickly reach the limits of their financial resilience. Banks require proof of fire insurance for real estate financing anyway.

Risks can also be insured individually
Since buildings insurance is a "linked" insurance in which the premiums for each risk (fire, mains water, storm and hail, natural hazards, etc.) are calculated individually, you can also insure each risk separately.

By the way: in the event of a change of ownership, the building insurance is automatically transferred to the buyer, but he or she can cancel it within four weeks.

As a buyer, you should not cancel an existing policy immediately, but only at the end of the year. This is because the insurer is entitled to the full annual premium even if the policy is terminated during the year.

The sum insured in the building insurance should correspond to the value of your property. If the sum insured is lower than the value of the building at the time of the claim, you are underinsured.

This can be disastrous in an emergency: if it turns out that you are underinsured, the insurer can reduce the compensation. In the event of fire or storm damage, for example, only part of the compensation will be paid. If the sum insured is 150,000 euros with a total value of the building now 300,000 euros, you are underinsured by 50 percent. If the damage then amounts to 30,000 euros, the insurer will only pay half, i.e. 15,000 euros.

Floating replacement value insurance protects against underinsurance
However, you can agree on a so-called underinsurance waiver with your insurer: in this case, damages are always compensated up to the full insured amount. A prerequisite for the underinsurance waiver is usually that a sliding replacement value insurance policy is agreed upon, through which premiums and insurance coverage are regularly adjusted to the increased value of your property.

Recently, building insurance with underinsurance waiver has also been offered on the basis of the so-called living space model. Here, the house is classified according to type and equipment, and the premium is set per square metre.

Regional risk surcharges

The basic cover of the building insurance includes fire, tap water, lightning, storm, hail and explosion damage.

Depending on the regional location, however, your building may also be at risk from other risks - especially natural events such as floods, storm surges, earthquakes, landslides, avalanches or snow pressure. 

Such natural "natural hazards" can be insured in the building insurance either individually or as part of a package. However, a surcharge is due, which can vary depending on the region and local risk situation.