April 14, 2023, 2:37 pm | Read time: 3 minutes
As the owner of an apartment or house, you should protect the property with various insurance policies. myHOMEBOOK presents the five most important ones.
Buying your own four walls usually fulfills a lifelong dream. To protect the property–whether it’s an apartment or a house–from floods, fire, and other disasters, owners should take out various insurance policies. The following five insurances are recommended.
Overview
1. Homeowners Insurance
The most important insurance for homeowners is homeowners insurance. In the event of damage, it covers all incurred costs, pays for repairs and reconstruction, and thus protects the owner from financial ruin. In addition to the building, all items permanently installed in it are insured. The coverage applies to damage caused by storms, hail, fire, or water leaks. Apartment owners should also not forgo homeowners insurance. In most cases, this can be billed proportionally through the homeowners association.
Example: If the house is completely destroyed in a fire, the replacement value is determined. The insured then receives a new, similar house financed at current prices–including architect, construction, and planning costs. However, construction must begin within three years. Otherwise, the claim for financial compensation expires.
Also interesting: When insurance does NOT cover burglary
2. Household Insurance
To ensure not only the house or apartment but also all movable items are protected, household insurance is essential. This includes furniture and household items, among others. Damage can be caused by fire, water leaks, or storms. Many insurers also offer optional coverage against natural disasters. Additionally, you can even insure your bicycle through household insurance.
Also interesting: Which insurance covers storm damage
3. Natural Disaster Insurance
If the property is located in a risk area for natural hazards, it is recommended that owners take out natural disaster insurance. It is offered as an optional add-on to homeowners and household insurance and can only be taken out in combination with one of these two insurances. In the event of damage, the insured usually has to bear part of the incurred costs.
Depending on the contract’s terms, the building and/or movable property are insured against the following risks:
- Heavy rain
- Flooding
- High water
- Snow pressure
- Avalanches
- Landslide
- Subsidence
- Earthquake
- Volcanic eruption
Also interesting: Which insurance covers a flooded basement?
Which Insurance Covers a Flooded Basement
What Insurance to Consider for a Balcony Power Plant
4. Personal Liability or Home and Landowner Liability
As an owner, you are obligated to ensure that your property poses no danger to others. Therefore, you should insure yourself in case third parties are injured in the property or on the premises.
Examples: A passerby slips on the unshoveled sidewalk in front of the house in winter and breaks an arm. A rotten branch falls on the neighbor’s house. In these cases, the owner must be liable. Thus, appropriate insurance is essential.
The same applies to undeveloped land. Landlords, homeowners associations, and owners of undeveloped land need home and landowner liability insurance to protect themselves against claims in the event of damage.
In contrast, a personal liability insurance policy is entirely sufficient if you live in your property as the owner. It covers all relevant damage scenarios involving third-party injuries or damage to their property.
5. For Mortgage: Term Life Insurance
When buying a property, you usually have to take out a large loan and plan its financing carefully. Therefore, you should also consider the consequences your death could have on the continued payment of the loan. No one wants to leave their relatives with a mountain of debt. That’s why you should consider life insurance.