The best homeowners policies with or without natural hazard protection

19.9.2024 – For two model locations with different risk situations, among the 14 test winners, Bayerische, Dema and Domcura offer the most affordable residential building insurance with protection against other natural hazards. With Bayerische, the module is mandatory. With Dema and Domcura, the annual premium increases by 126 euros each to 543 euros or 125 euros each to 688 euros if additional protection against natural hazards is chosen. This is shown by an evaluation by Stiftung Warentest.

There is currently a threat of flooding on the Elbe, Oder and numerous tributaries. Homeowners, especially in Saxony, where the most addresses of all federal states are located in flood zones (VersicherungsJournal 18.9.2024), could be hit hard by the floods.

The editorial team at Stiftung Warentest has just presented a new test of residential building insurance. For the first time, the annual premiums with and without natural hazard protection were determined. The results are published in the article “Finding top protection for your home” in the recently published issue of Finanztest 10/2024.

Four performance areas tested

The services of a total of 182 insurance policies at the sliding replacement value, which are offered by 67 providers, were examined. Only tariffs that are available without another contract with the same insurer were taken into account. The reference date was May 1st.

The four performance areas of fire, tap water, storm/hail and other natural hazards were put to the test. The latter include floods, backwater, earthquakes, subsidence, landslides, snow pressure and avalanches. It is explained in detail and using the example of an affected family that rising groundwater due to heavy rain is not included.

Basic protection and additional services assessed

The testers consider it a basic principle for residential building insurance to include the waiver of reductions in cases of gross negligence as well as the assumption of demolition and cleanup costs, transport and storage costs, decontamination costs and costs due to building regulations and overvoltage damage caused by lightning.

These services are referred to as basic protection, which accounts for 70 percent of the overall assessment. The additional services make up 30 percent. These include:

• Hotel costs if the house is uninhabitable or reimbursement of the local rental value,
• Expert costs in expert proceedings,
• Smoke and soot damage, without occurrence of an insured risk,
• Impact of land vehicles such as cars and rail vehicles,
• Frost and breakage damage to drainage pipes on the property,
• Benefits despite unclear responsibility when changing insurer,
• Preventive insurance. Construction work is insured without notification until at least the next due date.

The overall assessment is based on school grades. These range from “very good” (0.5 to 1.5) and “good” (1.6 to 2.5) to “satisfactory” (2.6 to 3.5) to “sufficient” (3.6 to 4.5) and “unsatisfactory” (4.6 to 5.5).

A model customer with a normally equipped property defines

A model customer was defined for the comparison. The customer is 45 years old and, as part of a change of insurer, chooses a contract with a one-year term, subsequent automatic renewal and annual premium payments. There are no previous claims. No deductible was agreed for the risks of fire, tap water and storm/hail.

The policyholder owns a house built in 2004 in construction class I with 150 square meters of living space, 50 square meters of which are in the converted attic. The full basement is not converted into living space.

The normally equipped property is permanently inhabited and is used only for residential purposes. There is a garage on the property. There are no fire-hazardous businesses in the area.

Annual contributions determined for two locations

The auditors determined annual contributions for two locations with different elementary hazards. These are Geiselberg in Rhineland-Palatinate, which is classified in the lowest hazard class 1, and Gera in Thuringia. The higher hazard class 2 applies to this city. The basis is data from the German Insurance Association (GDV).

The table shows, among other things, the premiums with and without cover against other natural hazards for both locations. Only products rated “very good” are listed. The providers are only represented with their best offers.

14 test winners

The result: The testers awarded 94 tariffs the grade “very good”. 22 products were found to be “good”. Five were only “satisfactory” and four were “adequate”. However, a total of 57 offers were “inadequate” according to the testers. The reason given for this is that the providers cannot pay for damage caused by gross negligence.

In the extremely close race for the best overall rating, 14 players achieved an impressive 0.6 points with their “very good” rates out of a maximum possible 0.5 points. The test winners are therefore (in alphabetical order):

• Adcuri GmbH (“Premium Protection”),
• Alte Leipziger Versicherung AG (“Comfort”),
• BA the Bayerische Allgemeine Versicherung AG (“Prestige”),
• Barmenia Allgemeine Versicherungs-AG (“Premium Protection”),
• Degenia Insurance Service AG (“T 23 Optimum”),
• Dema Deutsche Versicherungsmakler AG (“IMMO PROTECT Top Protection”),
• Domcura AG (“Top Protection”),
• Property Owners Insurance VVaG (“Home Max”),
• Interrisk Versicherungs-AG Vienna Insurance Group (“XXL”),
• Janitos Insurance AG (“Best Selection”),
• Concept & Marketing – your independent concept developer GmbH (“allsafe domo”),
• Rheinland Versicherungs AG (“Premium”),
• Rhion Versicherung AG (“Premium”) and
• SHB Allgemeine Versicherung VVaG (“Exclusive”).

Complete protection at Bayerische, Dema and Domcura in Gera …

For the Gera location with the higher risk class, two of the “very good” offers mentioned in the reports – Bayerische, Dema and Domcura – offer the cheapest rates including protection against natural hazards. All three test winners charge the sample customer just 543 euros per year.

With Bayerische, the premium includes compulsory protection against natural hazards. The Dema and Domcura tariffs, on the other hand, can be booked without natural hazard insurance, which costs 126 euros less each and amounts to 417 euros each.

Of the 14 test winners, the most expensive police insurance, including cover against other natural hazards, comes from Alte Leipziger, which charges an annual premium of 1,665 euros. The elemental damage protection therefore costs a whopping 1,040 euros extra. The insurer only charges 625 euros per year for the other three areas of coverage.

… and cheapest in Geiselberg

For the Geiselberg location with the lower risk class 1, Bayerische, Dema and Domcura also offer the cheapest policies among the 14 top tariffs at 688 euros for all four benefit areas. With Dema and Domcura, coverage against other natural hazards can be dispensed with. The premium is then reduced by 125 euros and amounts to 563 euros.

The Geiselbergers have to dig deepest into their pockets with the Rheinland insurer if they want to insure themselves against the risk of natural hazards. They have to pay 1,170 euros per year. Without other natural hazards, the price is 1,030 euros, which is 157 euros less.

Looking beyond the field of candidates with a quality rating of 0.6, it becomes clear that the Geiselberg location is even cheaper. Here, GVV Direktversicherung AG (“Premium”) cannot be beaten with an annual premium of 624 euros for all four service areas.

Europa Versicherung AG followed with 640 euros per year. According to the evaluation, the rates of both companies are “very good” and achieve 0.7 points.

Source

The report “Find top protection for your own home” can be accessed on the Stiftung Warentest website for 4.90 euros. The entire Finanztest issue 10/2024 can be purchased as a download in the online shop for 6.99 euros. The print edition can be ordered from the same place for 7.40 euros.

A table with all tariffs examined is available free of charge on the consumer protection agency’s website.