Rising costs: Home insurance will be more expensive from 2024 - what insured people need to know

Rising costs: Home insurance will be more expensive from 2024 - what insured people need to know

According to a report from www.capital.de,

From 2024, annual premiums for home building insurance will rise by 7.5 percent. This affects all insured people in Germany and is due to the increased costs for craftsmen and building materials. The adjustment factor will be 7.5 percent in 2024, which will lead to a significant increase in contributions. In 2023, contributions increased by an average of 14.7 percent, which shows that the increase for 2024 is still high, but slightly lower. Nevertheless, this is the second highest price increase in the last ten years.

For insured people, this means that from next year they will have to pay more for their home insurance. An example shows that for a 230 square meter apartment building in Duisburg, contributions could increase by 163 euros. In addition, there are annual cost increases due to the increasing age of the building. This has an impact on the consumer, who has to expect higher fixed costs.

Despite the price increase, it is important to remember that adjusting contributions to inflation is necessary to prevent buildings from being underinsured. In the event of a total loss, such as a house that burns down, insurance companies would no longer be able to cover the reconstruction of the building. It is therefore important to adjust contributions to ensure that buildings are always adequately insured.

Insured persons do not have an automatic special right of termination after the price adjustment. This means that you cannot terminate your contract early, even if the premiums increase. This could lead to insured parties looking for cheaper alternatives in order to save costs. It is therefore advisable to check your annual bills carefully and consider whether switching to another provider makes sense. The increase in homeowners insurance premiums will therefore have an impact on the market and the consumer.