Comprehensive benefits
With household insurance, you protect all your belongings against burglary, robbery, fire, vandalism, lightning, explosion, tap water, storm and hail damage.

The insurer will also compensate for unusual risks such as damage caused by vehicle impact or aircraft crash. Depending on the tariff, the insured person receives compensation even for freezing damage after power failure, loss of keys or damage after civil unrest.

As a rule, the insurer reimburses the replacement value of the destroyed or stolen household effects. In the case of damaged property, the necessary repair costs are reimbursed, up to a maximum of the replacement price.

In addition to the actual property damage, hotel costs are also reimbursed up to a maximum limit if the home has become uninhabitable after an insured event. The same applies to return travel or relocation costs after a particularly serious insured event.

You should not do without household contents insurance if the value of your household contents is so high that destruction, for example, by a flat fire - which is not at all uncommon - by burglary or also by vandalism or natural events can mean a considerable financial loss for you.

This is often the case if you have increased the value of your home furnishings over the years, for example by purchasing exclusive furniture or a high-quality kitchen. The value of entertainment electronics can also reach considerable sums.

Also important for young people
Household contents insurance can be important even for young people: the household contents insurance provided by your parents ceases to apply when you move out into your first own flat, and now you have to take care of the right insurance cover yourself. Even a little carelessness - such as a candle falling over - can lead to a total loss. This is particularly stressful if you have plundered your bank account for the new living room, the designer fitted kitchen or the fancy bedroom furniture down to the last cent.

At the latest, the new acquisition of losses after a loss shows how important good household insurance is, even for young people.

Limited benefits
The sum insured in the household insurance policy should correspond to the amount that would have to be spent on the new acquisition of the household effects in an emergency. Nevertheless, many consumers set the sum insured too low.

This can be disastrous in the event of a claim: if it turns out that you are underinsured, the insurer can reduce the compensation. In the event of a burglary or fire, for example, only part of the damage will be compensated.

If, for example, the sum insured is 40,000 euros with a total value of the household contents of 60,000 euros, you are underinsured by 33 percent. If, for example, a house fire causes damage of 12,000 euros, the household insurance will only cover two thirds, i.e. 8,000 euros. 

Tip: Check regularly whether the household contents and the sum insured still match - and adjust the policy in good time.

Many providers waive the right to reduce the compensation in case of underinsurance if you insure the household contents with a fixed sum of approx. 600 - 700 euros per square metre. This is worthwhile for expensively furnished flats. On the other hand, if you have few valuables in your first flat, you can save money by calculating the value of your household effects as if you were taking inventory - simply list all the valuables and add up the replacement values.

But: increase the sum insured in good time if the household contents are supplemented by valuable new acquisitions. Some companies offer special rates for young people insuring their first home. It is worth comparing prices again and again: some companies advertise low rates to attract new customers. Consumers can therefore save a lot by switching to a cheaper provider.

Good household insurance cover is cheaper than you think. You can get a sum insured of 50,000 euros in standard cover for a premium of well under 100 euros a year.

Important: Before taking out household insurance, you should make a list of all valuables in your household with their estimated value. You should also keep purchase receipts, and you can take photos of antiques.

This list will then help you to estimate the value of your household effects and thus determine the correct sum insured. In the event of a claim, you can then use this list to check the damage. Experts recommend a sum insured of about 650 euros per square metre.

Certain risks are only insured to a limited extent in standard household insurance. Depending on the insurer and the tariff, these can be e.g. bicycle theft or storm damage.

Secure bicycles in particular
Bicycles are insured against all basic risks at the place of insurance - but if a bicycle is stolen outside the place of insurance, insurers usually only pay if the bicycle was adequately secured, e.g. by a security lock. If the bicycle is stolen between 10 p.m. and 6 a.m., the insurer will pay if the bicycle was in the flat, cellar or garage at the time of the theft (in the meantime, some household insurers waive this so-called night clause).

Exception: the owner was still on the road with the bike at that time. The sum insured for bicycles is often limited, and the policyholder often has to pay an excess in the event of a claim. In some cases, insurers charge an additional premium for the inclusion of bicycles.

Storm damage from wind force 8
As far as storm damage is concerned, household contents insurers will only cover storm damage caused by wind force 8 or more. For this purpose, insurers keep a storm register that is regularly fed with current weather data.

When household effects go on a journey

It often happens that household effects are stored temporarily or for a longer period of time outside the insured home. But don't worry: as a rule, household effects are also insured if they are temporarily stored outside the insured home while travelling or because of training, military or civilian service or because of the policyholder's professional stay.

In addition to the insurance period, however, the sum insured may be limited when household effects are stored outside. During a move, the old and the new home are insured at the same time - provided that you change the place of residence within Germany. When the final change of residence takes place, but no later than two months after the start of the move, only the new place of residence is insured.

Important: The change of residence often also changes the value of the household effects: if you move into a larger flat, you often acquire more furnishings, so that the total value exceeds the old sum insured. Therefore, after a move, it is essential to check whether the sum insured still corresponds to the current value of the household effects. If not, adjust the policy immediately!