A burst water pipe in your home can be very expensive.
(Photo: dpa)
Cologne Inflation is also affecting the insurance industry. The rising prices for building materials are reflected in the premiums for homeowners insurance. Higher premiums are an extraordinary reason for termination.
“That can be a good reason to take a close look at your own insurance portfolio,” recommends Peter Grieble, insurance expert at the Baden-Württemberg consumer advice center. Your needs change over the course of life. That should be a reason to put the insurance companies to the test.
>> Read here: Ranking 2023 – the best insurance for liability, household goods, legal protection and residential buildings and builder’s liability
After all, the risks are also changing. The type of insurance a person needs depends on their personal situation. For most people, liability insurance is a must.
It pays for damage caused by the insured to a third party. For example, as a cyclist due to an accident on the road. Legal protection insurance helps to enforce your own claims.
If you own a valuable household, you should secure it with a policy. Homeowners insurance is essential for a homeowner. It protects the insured against the financial loss of what is usually an important part of their assets. Builder liability covers damage that may occur when building a house on the construction site.
The rating agency Franke und Bornberg has examined the insurers’ offers for five different types of insurance. The insurance experts assumed various sample cases: a family with children and a single person. Because there is no one insurance company that offers the right solution in every case. Determining the best insurance depends on many factors.
Quality before premium
In Franke and Bornberg’s ranking, quality is given the most weight: “When making a selection, the focus should be on the performance of the insurance company. The policy should cover personal risks and needs,” explains Michael Franke, Managing Director of the rating agency Franke und Bornberg. For this reason, quality accounts for 70 percent of the evaluation.
But of course the price should also play an important but not too dominant role. It accounts for 30 percent of the overall rating. If cheap insurance does not pay in the event of a claim, it is not in the interest of the insured. Selected sample cases and the most important results are listed on the following pages.
In order to choose the right portfolio of insurance, a consultation with a fee consultant or insurance broker can make sense. Recommendations from friends or ratings from financial advisors on rating portals such as WhoFinance can provide important help in finding a good advisor.
“People interested should make sure that the advisor explicitly asks about needs and wishes before making recommendations,” says consumer advocate Grieble. He advises also taking a look at the advisory protocol that the financial advisor must hand over. There, wishes and needs should be recorded in detail. “The contract should only be concluded if the information is correct.”
An insurance broker who receives commissions from the sale of products can also be of good service. He should offer the largest possible portfolio of insurers.
The insurance industry is going digital. Many providers offer digital ways of communication. For example, reporting damage via the Internet. This saves time and work.
But it also has another positive effect. “Digitization will continue to contribute to the fact that many providers will limit the service to online processes and will be able to further reduce premiums,” says Alexander Reimche from Service and Sales at the insurer Docura. In this way, digitization can help to ensure that premiums do not rise as much.
More: Insurance: Which ones do you need – and which ones are optional?