Increase of 7.5 percent: How will the increase in residential building insurance contributions in 2024 affect insured people?

Increase of 7.5 percent: How will the increase in residential building insurance contributions in 2024 affect insured people?

According to a report by www.capital.de, annual premiums for homeowners insurance will rise by 7.5 percent from 2024. This leads to higher costs for insured persons, even though there is no automatic special right of termination. This price increase results from rising tradesman costs and material costs, which residential building insurers include in their premium calculations. According to the General Association of the German Insurance Industry (GDV), this is the second highest price increase in the last ten years. The adjustment factor to 7.5 percent is necessary to take account of rising construction prices and collective wage prices for the construction industry, but this still means an additional financial burden for those insured.

Calculation examples show that a 230 square meter apartment building in Duisburg has to pay 163 euros more annually, while a 120 square meter single-family house in Dresden records a price increase of around 18 euros. Despite the undesirable financial consequences, it is clear that the premium adjustments are necessary to prevent buildings from being underinsured.

The observed price adjustments impose a financial burden on consumers, which may lead to an increase in monthly expenses and ultimately strain household budgets. Dies könnte auch Auswirkungen auf die Konsumausgaben und das Wachstum des Bau- und Immobiliensektors haben, da die steigenden Kosten eine Hürde für Bau- und Renovierungsprojekte darstellen.