5 things to factor in before taking out your home insurance
Fitted kitchen, risk of flooding... When it comes to home insurance, each country has its own specificities. For anyone insuring a home in Luxembourg for the first time, here are 5 factors to watch out for.
#1 The deductible is rarely applied in home insurance
Are you taking out insurance for the first time in Luxembourg? In this case, the amount of the insurance premium may strike you as a bit expensive. On average, it is 20% higher than in France or Belgium.
But why? Here, insurers rarely apply deductibles. This is good news, as it means no nasty surprises in the event of a claim! Unless the amount of the repairs is above the limit set by the insurer, you won’t have to pay anything.
#2 The importance of accurately valuing your property
Before being able to calculate your home insurance premium, the insurer will need to estimate your "content", i.e. put a value on your possessions.
To avoid having to calculate the value of your contents yourself, the insurer can offer you an estimate calculated from the average data of its clients based on the size of your home.
For example, for a 50 m² rented apartment, AXA recommends that you insure € 22,000 of property. For an additional 30 m², the total estimated amount is € 35,000. For a 150 m² house (without a basement) the contents are valued at € 53 000. This amount is indexed each year so in the event of a claim you can rest assured: furniture, clothing, household appliances... everything is covered!
What if this evaluation seems too expensive to you? You are under no obligation to follow the insurer's recommendations. You can estimate the amount of your property yourself. But be aware that, in the event of damage, an expert is sent out to assess the damage. However, the latter often observes that the amount assessed by clients is less than the actual amount of their property. We all tend to undervalue our assets. In the event of underinsurance, the expert evaluates the difference between the insured amount and the actual amount of what you own.
Let's imagine that you are insured for € 5,000 when the actual value of your belongings is € 10 000. As a result, only 50% of the value of your content is covered. The insurer therefore applies the same correction coefficient to your reimbursement. If a claim occurs under these conditions, instead of receiving the full amount due to you, you will only be reimbursed half.
#3 Don't forget the fitted kitchen
As a tenant, you probably think that the kitchen in your home is insured by the landlord? You’d be wrong! The tenant must insure it under their contents cover.
Just imagine if your fryer caught fire. Fortunately, you can control the flames in a few minutes, but the hood, worktop, cupboards and hobs are damaged. The amount of the repairs is € 4,000.
If the kitchen has not been included when you purchase your home insurance, you may have to reimburse part from your own pocket.
Generally speaking, the value of a fitted kitchen accounts for nearly a third of the contents of an apartment.
#4 Home insurance: beware of natural risks
Did you know? Unlike our Belgian or French neighbours, in Luxembourg you can take out home insurance without "automatically" being covered against natural risks.
Flooding, mudflow, sewer backup in the basement....
In both urban and rural areas, torrential rains are becoming more frequent. All it takes is a violent storm and a sloping street for the sewers to saturate and overflow, damaging your refurbished cellar or ground floor dining room.
If you are subject to this risk, consider requesting this optional coverage. In the event of a disaster, the “natural risks” insurance covers both the cost of clearing the site and the renovation work (painting, flooring, etc.) or the reimbursement of furniture. If your home is rendered uninhabitable, the insurance also covers your relocation costs.
#5 Your dog must also be insured!
Another particularity of the Grand Duchy is that every dog owner is required to declare it in his commune of residence. Most of them will also ask you to pay a tax (about €10) and provide proof of civil liability insurance. This liability, called private or family life, is linked to your home insurance.
You may be wondering what the risks are in owning a dog without insurance? According to insurance professionals, the risk is that the animal will escape, cross the road and cause an accident.
With any luck, the motorist or cyclist who has tried to avoid the dog will only suffer material damage. But what would happen in the event of a serious injury resulting in disability? As the owner of the dog, you would be held responsible.
Last piece of advice, remember to adapt your home insurance to your life changes. A growing family, a kitchen renovation or moving to a new house, don't forget to talk to your insurance company about it!
