These days the majority of households have all kinds of pricy items, starting with flat screens, laptops, smart-phones, tablets, designer clothes/ furniture, through to all kinds of valuables like collections, expensive jewellery, watches, accessories, antiques, art, etc ... – thus a paradise for burglars! In addition the amount of personal possessions add up over the years and one can easily loose track of the house content's real value, hence the full extent of financial damage in the event of a total-loss.
- impact of a air-/ landcraft
- storm & hail
- tap-water, frost and other breakages
- burglary, vandalism and robbery
- Elemental Risks
- Flood, backwater
- High tide
- Landslide, subsiding ground & sinkhole
- Lightning (not all insurers)
- Heavy rainfall (not all insurers)
- Snow pressure
- Volcanic eruption
The most important benefits:
- Insurance cover for all movable items
- Reimbursement method is "New for Old"
- Valuables are included
- "Away from Home" insurance
- Premises in adjoining buildings on the same property and garages are covered
- Waiver of under-insurance
- Uninhabited houses are covered
Good value for money are these benefits:
- Valuables should be covered to a min. of 20% of the insured sum
- No excess!
- Theft from vehicles in Germany, preferably Europe
- Bycicle theft without a night clause
- Gross negligence
- Cost reimbursement for security companies (min. 48 hours)
- Singe damages
- Water damages caused by waterbeds or aquariums
Underinsurance and its affects
This lack of coverage can sometimes occur if the policy holder forgets to increase the insured sum during the conractual period, does not know the new value of all possessions when proposing for cover or quite often due to bad consultation from the sales person. Latter happens when the insurance representative's only interest is to sell the client the insurance's product he represents, consequently having to cut the insured sum to stay within the client's budget.
Underinsurance is nothing else than the insured sum not tallying with the new value of all personal items and in the event of a claim can cost the customer a lot of money!
|A quick example|
|Insured sum:||10.000 €|
|Total value of all contents:||20.000 €|
|Insured damage:||8.000 €|
[Damage * (Insured sum + 10% precaution)] / Total value of all contents
When claiming for 20% and more of the total insured sum insurance companies tend to send an expert out to evaluate the damage. In this simple example the gap of 10.000€ would easily come to light and the insurer would deduct the discrepancy from the 8.000€ claim, leaving just 4.400€ final settlement figure.
This financial consequence is avoidable and all insurers offer inter alia a simple solution called "waiver of underinsurance". By insuring each square metre with 650,00€ the insurance will always pay the full insured sum, regardless if the value of your contents.