In the insurance industry, the term property insurance is defined as a generic term for insurance covering damage or loss to property. Property insurances are defined by scope and performance and that cover damage or loss of certain property.
The most common property to be insured is buildings, vehicles, pets, consumer goods, court costs, or furnishings.
The subdivision of the material assets is based on the specific risk and the individual requirement. Motor vehicle insurance is compulsory insurance for operating a motor vehicle. Household contents insurance protects your inventory and is therefore sensible and sensible, but voluntary.
What kind of property insurance is there?
The most common private property insurances include the following examples:
Legal protection insurance
Some of the more specialized property insurances include the following:
Animal liability insurance – e.g., B. Dog Insurance or Horse Insurance
Small animal insurance
Rent loss insurance
How important is property insurance?
The assessment of how useful property insurance can depend on the individual situation.
If you move into a large apartment and buy high-quality furnishings, household insurance seems to be entirely appropriate. The sum insured is based on the new value of the furnishings.
However, you can also have it calculated based on the number of square meters, which automatically means an underinsurance waiver.
Insurance is essential for motor vehicles. Due to its high value, a new car often requires partial and fully comprehensive insurance. In the event of a sudden total loss, the financial risk is minimized. However, in the case of a used car, liability insurance, or inexpensive partially comprehensive insurance may be sufficient.
Personal liability insurance is highly recommended. If, for example, you accidentally damage a car parked nearby while working on the outside of your house, you may suddenly have damage amounting to several thousand euros.
But even in everyday life, something can always happen, where you don’t want to sit on the damage yourself.
Adjustment of the sum insured.
It is advisable to check the insurance regularly to determine whether it is still sufficiently suitable for the individual requirements. If, for example, a house or other real estate is converted or modernized, their value changes so that an adjustment to the building insurance must be made.
The apartment’s inventory can also increase in value if prices rise or new household items are added.
During the term, you should consider changing the sum insured. Often, an automatic annual increase in the sum insured can be agreed on for this to be sufficiently covered in the event of an insurance claim.
Term and termination of property insurance
In principle, property insurance terms are indefinite as long as the insured risk exists or the contract is terminated. Policyholders can agree on a minimum contract term of up to three years to get a discount on the insurance premium.
For certain types of contracts, the term can be limited when the contract is concluded. For example, travel insurance ends automatically after the trip is completed.