Calculate household insurance

How is home insurance calculated?

The premium for a home insurance policy can depend on various factors, such as the type of residence, the location, the desired cover, your claims history and other individual factors. However, there are some common factors that are usually considered when calculating premiums for home insurance. Here are the typical factors:

• Sum Insured: the sum insured, also known as the cover amount, is the maximum insured amount that the insurance company will pay out in the event of a claim. You should ensure that this sum is sufficient to cover the value of your household contents. The higher the sum insured, the higher the premium will usually be.
• Place of residence: The location of your place of residence influences the premium. In regions with higher crime rates or a higher risk of natural disasters, premiums may tend to be higher.
• Type of accommodation: Whether you live in a flat, house or other type of building can affect the premium. Insurance companies take into account the type of construction, size and risk of the building.
• Deductible: The excess is the amount you have to pay yourself in the event of a claim before the insurance company will cover it. A higher excess usually results in lower monthly premiums.
• Insurance extensions: If you add additional cover options, such as protection for valuable jewellery or electronic devices, the premium will increase accordingly.
• Insurance history: Your insurance history, including previous claims and insurance claims, can affect your premium.

How high should the sum insured be?

When choosing the sum insured for household contents insurance, it is important to consider the total value of your possessions. Household contents include items that you would typically take with you when you move. This includes furniture, electronic equipment such as televisions, kitchen appliances, clothing, sports equipment such as skis, bicycles and personal valuables such as mobile phones, laptops or cameras.

To determine the right sum insured, you should make a list of all your possessions and calculate their replacement value. Think about what it would cost to buy these items new today. The total sum of these new values forms the basis for determining the sum insured. This sum represents the maximum amount that the insurance company will reimburse in the event of a claim. It is important to choose a realistic and appropriate sum insured in order to be adequately covered in the event of a claim.

What is underinsurance?

Underinsurance occurs when the sum insured under your household contents insurance is lower than the actual value of your possessions. This can have various causes. For example, the total value of the household contents may have been underestimated when the insurance was taken out, or the value of the household contents may have increased over time due to new purchases or other changes. Examples of such increases in value are the purchase of high-quality furniture or expensive bicycles.

To avoid underinsurance, it is advisable to include a certain reserve for future purchases when taking out household contents insurance. Experts often recommend adding a surcharge of around 10% to the current value of the household contents. This measure helps to ensure that the sum insured remains sufficient even in the event of increases in value due to new purchases or changes in life circumstances.

Is overinsurance also possible?

Yes, overinsurance is possible. This occurs when the sum insured set for your household contents insurance significantly exceeds the actual value of your possessions. However, in the event of a claim, the insurance company would only reimburse the replacement value of the household contents, even if the sum insured was set higher. This means that in such cases you pay higher insurance premiums without receiving any additional benefit.

It therefore makes sense to review the sum insured regularly to ensure that it adequately reflects the current value of your possessions. An adjusted sum insured can help to avoid unnecessarily high premiums and ensure that you are adequately compensated in the event of a claim.