What exactly does my household contents insurance cover?

The short answer

A household contents insurance reimburses damage to your personal belongings due to fire, lightning, explosion, theft, vandalism, storm, and water damage. This applies to furniture, clothing, electronics, books, and other possessions in your home. The coverage is usually limited to a maximum amount you have chosen when taking out the policy. Some valuable items such as jewelry or art often have a separate limit. Note: not all causes of damage are always covered, this depends on your specific policy.

What does the law say?

The law does not oblige insurers to offer a household contents insurance, but if they do, they must comply with strict rules. Insurers must clearly state what is and is not covered in the policy terms. They cannot simply refuse a claim without good reason and must pay out within a reasonable time. In case of disputes, you can turn to Kifid, the independent dispute resolution body for financial services.

What should you watch out for?

Always check your policy terms for the exact coverage and exclusions. Many policies have specific limits for expensive items like computers, jewelry, or musical instruments. The way the damage occurred can also be important - storm, for example, is often only covered from wind force 7 or 8. Also look out for the deductible you have to pay in case of a claim.

Practical example

Sandra comes home and discovers that there has been a burglary. Her laptop, television, and jewelry have been stolen, worth a total of €3,000. She thinks that everything is covered under her €50,000 household contents insurance. However, when filing her claim, she discovers that there is a limit of €500 for jewelry, unless they are separately listed. As a result, she receives €2,000 for the electronics and only €500 for the €1,500 worth of jewelry. The €150 deductible is also deducted from the payout.

What can you do?

Start by reviewing your current policy terms to see what is exactly covered.