Contributions to elementary damage insurance increase by up to 38 percent in 2024

Contributions to elementary damage insurance increase by up to 38 percent in 2024

Financial tip test: Contributions to elementary damage insurance increase

Berlin, 07.06.2024-According to a current financial tip analysis, the contributions to additional protection for elementary damage have increased significantly. Compared to the previous year, in which the surcharges were only eight percent in the best case, they are at least 38 percent or higher in 2024, depending on the address and the danger zone. This shows an analysis with ten test profiles and inquiries from the seven largest building insurers. The costs vary greatly, so Finanztip strongly recommends that the policyholders to compare the tariffs.

The increasing contributions to elementary damage insurance come at a time when heavy rains and floods in several regions and cities of Germany have led to disaster alarm. According to the overall association of insurers (GDV), 54 percent of the residential buildings in Germany are still not insured against elementary damage. In view of this situation, Finanztip recommends that all real estate owners have additional protection against damage caused by flood and heavy rain.

In addition to the increasing contributions to elementary protection, there are also general premium increases for residential building insurance due to the increasing construction costs. The GDV has already announced an increase of 7.5 percent for all insured persons. In addition, the additional costs for elementary protection vary greatly. According to the last financial tip test for residential building insurance in December 2022, these were between eight and 580 percent. In more risky areas, some cheaper insurers currently no longer offer elementary protection, which means that homeowners have to switch to more expensive tariffs.

The financial tip analysis also shows that larger insurers deal differently with the growing costs and dangers. Three of the seven major insurance companies (Bayerische Versicherungsverband AG, Bavarian Brand Insurance and Provincial) stated that despite elementary protection, not wanting to raise the contributions by more than 7.5 percent. R+V Versicherung even plans to reduce the contributions to elementary protection in low -risk areas, while they will increase more strongly in regions. The comparison of the tariffs is therefore particularly worthwhile for those who are looking for a new insurance company.

For insured persons who receive an increase in premium of 7.5 percent, there is initially little scope for action, except for regular termination at the end of the insurance period. In the event of a stronger increase in premiums, however, there is an extraordinary right of termination. However, Finanztip warns against accepting an offer from the insurer to assure residential building insurance with elementary protection to the old contributions to a fixed sum insured, as this could lead to the fact that the building may not be reimbursed in the event of damage.

In terms of the test, Finanztip examined a total of 35 online portals with comparative computers for residential building insurance in 2022. A catalog of minimum criteria has been defined, which should cover powerful residential building insurance. In May 2024, queries for a total of ten test profiles with different features were carried out on the recommended comparison portal MR-MONEY and the contributions were compared with those of December 2022 in a price analysis.

According to the press release, further information on the financial tip analysis is available at the following link: [Link to the press release].

About Finanztip:
Finanztip is Germany's money guide and offers information about various financial issues. Finanztip's offer includes a weekly newsletter, a website with over 1,000 guides and a YouTube channel and podcasts. Finanztip is part of the non-profit Finanztip Foundation, the aim of which is to support consumers in financial matters.

press contact:
Finanztip Consumerinformation GmbH - A company of the Finanztip Foundation
Hasenheide 54
10967 Berlin
Telephone: 030/220 56 09 - 80
Managing Director: Dr. Fabian Dany, Stephan Link, Saidi Sulilatu, Hermann-Josef Tenhagen
Seat of society: Berlin | District Court: Charlottenburg | HRB 162233 B

Source: FinanzTip consumer information gmbh - a company of the Finanztip Foundation/OTS