
What insurance do I need as a homeowner?
As a rule, insurance should be taken out for cases in which the damage cannot be repaired by the homeowner alone. There are generally three types of insurance that are essential for property owners whose property has already been built.
Home insurance is a must for every homeowner. It provides insurance coverage for damage to your property caused by storms, hail, fire, or water from pipes. Whether it's roof damage after a severe storm or water damage after a burst pipe, the insurance covers reconstruction and repairs. Home insurance policies often exclude compensation for gross negligence or pay a lower amount. Homeowners should bear in mind that such a case can arise quickly. A candle that has not been extinguished or a forgotten stove can sometimes lead to a fire with catastrophic consequences. For this reason, owners should definitely choose a tariff that also covers gross negligence. If your property is located near a river, for example, you should also insure yourself against damage such as flooding. Home insurance can be extended to include insurance against such natural hazards.
Another type of insurance that is often useful for homeowners is household contents insurance. However, your individual situation must be taken into account here. The decisive factor here is how expensive the contents of your home are. Before taking out such insurance, you should estimate how much it would cost to replace your household contents. Would you be able to afford to replace furniture, appliances, or other items if you lost them in a fire or burglary? If you have invested a lot of money in exclusive furniture and the latest technical appliances, home contents insurance may be advisable and will pay off in the event of damage.
After all, third parties can also suffer damage to your property. As the owner, you are obliged to ensure that your property does not pose a danger to other people or their property. A tree that falls onto your neighbor's property can cause damage for which you will be liable. Similarly, you will be liable if a pedestrian slips on the unplowed sidewalk in front of your house and suffers injuries. However, if you already have personal liability insurance and live in your own property, you can forego property owner liability insurance. This is because personal liability insurance already covers the costs of damage to third parties.
Not sure whether your property is associated with significant risks? Contact us! We will be happy to advise you.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please have the facts of your specific case clarified by a lawyer and/or tax advisor.
Photo: © TAlexey/Depositphotos.com