How To Contents Insurance

This article will briefly explain all the important questions about your contents insurance and what you should look out for

Hannah
2019-05-06
Lu

Why do I need contents insurance? What is covered, and what’s not? We’re here to help and give you a better understanding of everything you need to know.

The ultimate guide to contents insurance

Getting insurance is something we recommend, but isn’t something most people would get excited about. If you’re worried about insurance being too complicated or difficult to understand, we’ve put together all there is to know about contents insurance so that you can see how easy it actually is.

Read on to learn about the following points:

  • What is contents insurance?
  • Do I really need contents insurance?
  • What’s considered to be ‘contents’ under contents insurance anyway?
  • What’s covered by Getsafe’s contents insurance?
  • How much does contents insurance cost?
  • What is the insured sum and how can I determine it?
  • When am I underinsured? What is an underinsurance waiver?
  • How is living space determined correctly?
  • What do I have to consider with my contents insurance?
  • Does my insurance also apply outside my home?
  • Should I get a glass package extension?

What is contents insurance?

Every item in your home has both a personal and financial value. If you find yourself in a scenario where your possessions have been damaged or destroyed, it can cost serious money to replace these items, many of which could be essential. Having a contents insurance policy gives you peace of mind in case of the unexpected, protecting your belongings against damage caused by fire, water, theft, storm and hail.

Do I really need contents insurance?

If something happens to your belongings, replacing them can be very expensive. The more valuable items you have, the more important it is to think about contents insurance. However, not every insurance policy fits everyone. When you think about contents insurance, you should read carefully about what is and isn’t covered and whether the policy really suits your needs.

To begin, simply list your belongings and estimate their (approximate) value. You will probably be surprised by how much you own and what it’s worth. This will also be very helpful when thinking about your insured sum.

What’s considered to be ‘contents’ under contents insurance anyway?

Your contents include all items that are used privately in your household, such as electronics, furniture and clothing. Excluded from this rule are all items that are not your own but may belong to your household, such as your landlord's fitted kitchen. However, borrowed items that are in your home at the time of the reported damage are covered under your insurance.

What is covered by Getsafe’s contents insurance?

Your contents insurance policy protects you from certain insured risks. These include fire, water, theft, storm and hail. This is important to understand, as household items that are damaged only by these specific risks will be covered under the insurance, allowing you to get the items replaced. As an example: If a broken water pipe from your washing machine leaks and causes water damage in your apartment, then you are covered by your contents insurance policy and will receive compensation for the damage. Theft is another scenario that can take place that your Getsafe contents insurance will pay for. With Getsafe, you can report such damages via app in only three minutes and the sum will be paid out within two weeks.

How much does contents insurance cost?

The cost of contents insurance is relatively low compared to the possible financial damage to your valuable belongings. What you pay for is calculated based on the size of your home, your place of residence, and how much you are willing to pay towards a deductible. As an example: Suppose you live in a flat share with two roommates in a 70 square metre apartment in Heidelberg and you want to insure your household contents with a €0 deductible. For the basic module at Getsafe, you would pay only €3.52 per month and the total insured sum (i.e. the maximum amount paid out to you in the event of a full loss of insured items) would be €45,500. Since Getsafe doesn’t use brokers and is 100% digital, we are able to pass along these savings to you. Try it out for yourself and see how much you could be paying towards a contents insurance policy today.

What is the insured sum and how can I determine it?

The insured sum describes the maximum amount that you will receive in the event of a full loss, i.e. when all of your insured items are destroyed or lost. It must reflect the value of all your goods in the household. For full protection, you must determine the correct insured sum. To do so, you have two options:

  1. You can use the automatically-calculated insured sum. This is calculated by multiplying your insured living space in square metres by the standard value of €650.  €650 may seem to be a lot, but it represents the average market value of a German household per square metre of living space.
  2. You can also set the insured sum manually. Note, however, that the underinsurance waiver (see the next question) only applies if you select the automatically-determined insured sum or increase it manually.

When am I underinsured? What is an underinsurance waiver?

If, for example, you choose an insured sum of €20,000, but your household contents are currently worth €40,000, you are underinsured. If there is a partial loss in your household now, we would first check the value of your household contents and then pay them out proportionately. In the case of a partial loss, you would only get reimbursed a proportionate amount of 50% of the costs incurred.

If we have agreed to a waiver of underinsurance with you, we usually won't check how much your household contents are really worth in the event of a claim. We will agree to the waiver of underinsurance with you if you choose the insurance sum of €650/square metre or if you increase the resulting insured sum.

How is the living space determined correctly?

Living space is the floor area of all rooms in your apartment or house. Contents insurance is always calculated for an entire apartment or household. In order to estimate the sum insured correctly, you should indicate the number of square metres of the entire household, even if you have only rented one room in a shared flat. Living space does not include, for example, all areas of stairs, terraces, balconies, storage rooms or cellars unless they are used for residential or hobby purposes. Scenarios where these areas would count towards your total living space would include having your own personal gym or workshop in your basement. The best way to find out what is or isn’t considered living space is to have a look at your rental or purchase contract or your construction documents.

What do I have to consider with my contents insurance?

If you move after taking out your contents insurance, please let us know about your new address as soon as possible. Please note: Your address details for your contents insurance policy will NOT be automatically adjusted when you update your profile in the app. In this case, please let us know where you have recently moved to and inform us regarding the size of your new living space (in square metres). To do so, send your message to Carla in the app or email our customer service team: [email protected]. As soon as we have entered the changes, you will receive a confirmation email from us with your updated contents insurance policy.

Is my family covered under my contents insurance?

Yes, your family is covered under your Getsafe contents insurance. The policy includes your partner and any of your relatives, provided that they permanently live with you in your home. They do not have to be mentioned separately as part of registration. The same applies to any children who may be in school or doing recognised voluntary or military work. Your spouse, life partner or other people who live with you in a roommate-like setup are also covered under the policy. The primary condition is that all of you must be registered under the same address and live in the same household. We recommend that you add your roommates as co-insured individuals in the app. This will allow them to have access to their insurance coverage and enjoy all of the benefits of the Getsafe app.

Does my insurance also apply outside my home?

Yes, your insurance coverage also applies to common areas for laundry machines, outbuildings, and garages on the insured property up to the insured sum. However, restrictions apply to contents in garages on other properties or in bank safes. If you’re a frequent traveler, your contents insurance even covers your hotel room if you're temporarily away from home. In this case, temporarily means being up to six months away from home  with our Contents Comfort Product.

Should I get a glass package extension?

Our Comfort and Premium rates cover almost all of your household items, but do not include building and furniture glazing. Now you might be wondering, what does building and furniture glazing include? Some examples are: your beautiful wall mirror, the ceramic hob, the modern glass table your mother gave you when you moved in, or your beloved aquarium. With us, everything is covered through our glass module.

What do I have to do when I have a claim?

With Getsafe, you are well covered. You can file your claims instantly via our app and we’ll send you the money as soon as possible. Simply go to the Getsafe app and click on the “Service” button in the bottom navigation bar and then select "File a claim". If you would like to speak to our claims team personally, you can call them during our working hours (Monday - Friday, 8AM - 8PM at +49 6221-3579991). Check out our blog post “How To File a Claim” to learn about what you need to consider when filing a claim with us, and also how you can help us process your claim as quickly as possible.