Expensive residential building protection: These 11 tariffs failed!

Expensive residential building protection: These 11 tariffs failed!

Residential building protection has become noticeably more expensive in recent years, which is not least due to the analysis of 356 tariffs by Franke and Bornberg. This comprehensive assessment shows that the number of plans awarded the top FFF+ rating increased from 34 to 51, an increase of 50%. The analysis was based on 81 test criteria and includes 89 providers. The total number of tariffs tested remained relatively constant at 341 in 2024 and grew slightly by 4.4% to 356 in 2025. 161 tariffs were in the top three assessment levels.

Franke and Bornberg report that the quality of residential building insurance has increased slightly. 14.3% of the tariffs examined reach the top group “FFF+”, compared to 10% in the previous year. However, 12.64% of the tariffs have poor or insufficient performance, which is often reflected in the award of a grade of “FF”. Weaknesses are particularly evident in services for burst pipes, animal damage, graffiti and the removal of fallen trees.

Price rise and market changes

In order to get out of the loss zone, many insurers have significantly increased their residential building premiums. The current trend shows that the annual costs for top insurance protection with elementary cover in Hanover are between 500 and 900 euros, compared to 450 euros in the previous year. The price increase can be observed across the industry, and damage expenses rose from 7.7 billion euros (2022) to 9.7 billion euros (2024).

The ratings also show that some new tariffs offer better protection options, for example for photovoltaic systems. In particular, good tariffs are those that include PV systems in basic protection. Some insurers also offer separate modules for technical risks or loss of yield from photovoltaic systems.

Criticism of poor performance

Despite positive developments in some areas, weaker tariffs are still a major problem. These often show significant gaps in insurance coverage, for example in the event of theft of accessories or scorching and scorching damage. The reduced services in these areas are crucial for the overall assessment of the tariffs. In particular, 9 residential building insurers received the worst rating grade of “F-” for a total of 11 tariffs, including insurance companies such as BGV-Versicherung AG and HanseMerkur Allgemeine Versicherung AG.

The results of the ratings and the corresponding details can be viewed on the Franke and Bornberg website and provide consumers with an important basis for decision-making. The recommendations for individual tariff selection are essential, as differences between providers can mean a difference of thousands of euros.

In summary, the homeowners insurance market is changing. While some providers are improving their performance and offering new protection for modern needs, choosing the right tariff remains a challenge - not only due to price developments, but also due to the varying quality of the offers.