• In a household insurance policy, all permanently inhabited houses and apartments are generally insurable.

• The basic coverage of a household insurance policy protects against fire, lightning, explosion, implosion, water damage, storm, hail, burglary, and theft.

• Policyholders should agree on an insurance sum of 600 to 700 euros per square meter.

• When canceling the policy, contractually agreed notice periods must be strictly adhered to.

• A household insurance policy reimburses damaged or stolen items (theft) "in kind and quality" at their replacement value. In addition to property damage, incidental costs such as cleanup costs, protection costs, or hotel costs are also covered.

If your household items—referred to as "Hausrat"—are of low value, you may be able to forgo a household insurance policy. However, if your household contains valuable items that you cannot or do not want to replace on your own in the event of a break-in, theft, or fire, insurance coverage is advisable.

In general, all permanently inhabited houses and apartments can be insured through a household insurance policy. Conversely, weekend homes, vacation homes, and second homes are excluded from the coverage.

• Protection against damage caused by fire, water leakage, storm, hail, burglary (depending on the contract, additional natural hazards such as flooding may also be covered)

• Insurance at replacement value

• Option to avoid underinsurance

• Only partially deductible from taxes for business owners

• No coverage for intentional damage, damage caused by nuclear energy, and damage to rented property

Depending on the policy, two basic types of household insurance are distinguished. The basic coverage protects against damage caused by:

• Fire
• Lightning
• Explosion
• Implosion
• Water leakage
• Storm
• Hail
• Burglary

In addition to the basic coverage, optional additional coverage can be selected for the household insurance. This additional protection covers so-called natural hazards, such as damage caused by earthquakes, backflow, avalanches, or snow pressure.

Household insurance also covers items that are stored within the household but used outside. This could include sports equipment such as canoes or surfboards.

In the event of damage, the replacement value always applies to the household items that need to be replaced. By definition, the replacement value in insurance law is the amount "that must be spent to replace an item of the same kind, quality, and function." 

This refers to the price that would need to be paid for a new item with the same properties and quality characteristics.

• Insurance zone for the insured location (different risk of damage depending on the region and address)

• Construction of the building (wooden house, solid roof, cellar)

• Insurance sum (the higher the insurance sum, the higher the premium)

Depending on the insurer, you should estimate an insurance sum of 600 to 700 euros per square meter of living space or choose a total insurance sum that covers the replacement value of the household items. 

With a deductible, you have the option to lower the premiums for your household insurance. This offers a good way to customize your policy. 

However, as the insured party, you should be aware that the damage amount in the event of a claim must exceed the agreed deductible. Otherwise, the insurer will not take action, and you will have to cover the damage on your own.

Whether a deductible makes sense depends primarily on the value of your household items and how much it affects the insurance premiums.

Household insurance for a 90m² apartment

• Insurance sum: 650 €/m²
• Deductible: 250€
• Building with solid roof and exterior walls
• Residence: Leipzig (04318)
• Monthly premium: 8.66€

A deductible in household insurance and the building's construction reduce the insurance premium. However, since Leipzig has a relatively high crime rate, this leads to an increase in costs.

Household insurance does not provide coverage if the damage:

• Was intentionally caused

• Resulted from nuclear energy or war-related events

• Is a damage to rented property

As a landlord, you can take out a household insurance policy for a rental property, provided that your own household items are inside. This is especially the case if, for example, you are renting out a furnished apartment. You should, of course, weigh whether the costs and the risk of damage are proportionate.

In the event of damage, an insurer will only cover the damage to the policyholder’s property. This means that tenants should have their own policy to insure their personal belongings against theft, storm, fire, and similar risks.

Since household insurance only covers the property of the insured person, it is also relevant in shared apartments. Your roommates, with whom you share the apartment, are not covered by your household insurance.

When you move in with your partner, you can combine your household insurance policies and save on premiums. If both partners previously had separate household insurance policies, the older policy typically remains in effect. 

Most providers offer a special right of cancellation for existing policies when moving in together.

You can cancel your household insurance by sending a letter to the insurer. It's important that they can assign the cancellation correctly. The easiest way to do this is by using a clear subject line (e.g., "Cancellation") and including your insurance number.

More important than the format of the letter is adhering to the cancellation notice period. This can vary depending on the insurer and is specified in the contract. Cancellation periods of up to three months are possible. If you fail to cancel within the required time, your household insurance will automatically renew for another year.