Property Insurance

What should you insure your property against?

 

• Insurance
• Homeowner's Insurance:

When financing a property, the lender generally requires proof of fire insurance. However, this is only one part of homeowner's insurance. You should not only insure your property against fire, but also take full advantage of the comprehensive coverage:

• Fire, lightning, explosion, airplane crash
• Water damage (e.g., burst pipes)
• Storm damage (generally from wind force eight)
• Hail damage.

Some insurance companies also offer coverage against natural hazards, such as flooding. The question is whether this is necessary or if the cost-benefit ratio is worthwhile.

Pay attention to additional benefits offered by individual insurance policies, such as expert fees in the event of damage, cleanup and demolition costs, hotel accommodation in the event of damage, etc.

When purchasing a pre-owned property, the existing insurance policy automatically transfers to you. Unless you cancel it within four weeks of the land registry entry and can provide proof of new insurance.

Insurance during house construction:

If you are building a new house, don't wait until completion to take out insurance; be sure to take out a shell construction insurance policy.

Water pollution liability insurance:

This is only relevant for owners who heat their property with oil. If this is the case, this insurance is highly recommended. The insurance covers damages that may result from leaking heating oil from a leaking oil tank. The costs can quickly become very high if potentially oil-contaminated soil has to be removed, or a lake or groundwater has been contaminated.

Homeowner's liability insurance:

This is only necessary if you intend to rent out your property. It covers damages caused to people by your property (e.g., by falling roof tiles).

Insurance for Homeowners:

In these cases, you should take out homeowner's liability insurance, construction all-risks insurance (and, if friends and acquaintances are helping you, also construction worker accident insurance). These policies offer sufficient protection against unforeseen events (e.g., roof collapse due to a storm, but also theft, etc.), as well as against liability claims if people are injured on your construction site. A "normal" liability insurance policy is not enough!

Don't skimp on insurance, especially when building a new home. If there's a big scratch on your new bathtub, no one will want to take responsibility. At least then you'll have someone to contact to handle the claim.