Contents insurance

Contents insurance (Hausratversicherung) covers belongings such as furniture and clothes. It is voluntary: registering your address does not automatically give you a policy. It also does not cover harm you cause to someone else.

In short

• BaFin states that a contents policy is voluntary. It follows the contract’s definition of your goods. BaFin states that the first question is whether you could replace the goods yourself.
• BaFin describes the insured property as the movable things in the home, such as furniture, appliances, clothing, and valuables, and the usual events as fire, storm, hail, water damage, and burglary. The conditions set the sum, the limits for cash and jewellery, and whether a bicycle outside the home is included.
• BaFin states that a bicycle is always covered only when it is in the home, a locked cellar, or a garage, unless the contract adds theft away from the property. Flood, heavy rain, landslide, avalanche, and earthquake are a separate natural-hazard add-on, not those basic events.
• Section 75 reduces the payment in proportion when the sum insured is considerably lower than the insurable value at the time of the loss. BaFin states that a sum set by floor area usually includes a waiver of that underinsurance test. That waiver is a contract term.
• Harm you cause to another person is private liability insurance. A contents policy does not pay that claim, and it does not insure the building.

What you need to know

Contents insurance is voluntary. BaFin suggests starting by asking whether you could afford to replace your belongings yourself. The policy can cover movable items such as furniture, appliances, clothes and valuables against events such as fire, storm, hail, water damage and burglary. The contract sets the insured amount, limits for cash and jewellery, and whether a bicycle outside the home is included.

BaFin says a bicycle is always covered only when it is in the home, a locked cellar or a garage, unless the contract adds theft away from the property. Flood, heavy rain, landslide, avalanche and earthquake require a separate natural-hazard add-on.

If the sum insured is considerably lower than the insurable value at the time of the loss, section 75 reduces the payment in proportion. BaFin says a sum set by floor area usually includes a waiver of that underinsurance test; check the contract for the waiver. A contents policy does not insure the building or cover harm you cause to someone else. See the buying and private-liability guides for those types of cover.

What to do

1. If you buy contents cover, compare the sum with what it would cost to replace the goods. Read whether bicycles, cash, and natural hazards are included.
2. If the insured amount is much lower than the insurable value of your belongings at the time of the loss, your payout may be reduced in proportion to the shortfall under section 75. Check whether your contract waives this reduction.
3. Keep the policy documents and follow the contract’s instructions for notifying the insurer.
4. If you cause harm to another person, use the private-liability page. This contract does not cover that claim.

Common mistakes

• Treating a contents policy as liability cover. One concerns your goods. The other concerns harm you cause to someone else.
• Treating the policy as compulsory because motor insurance is compulsory, or because you have registered your address.
• Assuming a contents policy pays in full when the sum insured is considerably below the value. Section 75 is the proportion rule unless the contract waives the test.
• Expecting the basic events to include flood, heavy rain, landslide, avalanche, or earthquake. BaFin states those are a separate natural-hazard add-on.