Home insurance rates depend on multiple criteria:
- The type of accommodation: An apartment will generally cost less to insure than a house due to a smaller surface area and different risk exposure.
- You are a tenant or an owner: you will not need the same guarantees in one case or the other.
- Your personal property value: The more valuable your possessions are, the higher the insurance premium will be. Insurers take into account the total amount insured for your personal property (including a fitted kitchen).
- The type of coverage chosen also impacts the cost. A basic formula will cover the main risks such as fire or water damage, if you add additional guarantees, such as acts of vandalism, sports equipment or valuables, this will increase the cost of your insurance.
Although home insurance is not legally mandatory in Luxembourg, it is strongly recommended to protect your home and personal belongings.
If you are a tenant, the owner will probably ask you for a certificate of apartment insurance to cover rental risks. Water damage or broken glass can happen quickly; in the event of a claim, repairs will be your responsibility if you are not insured.
If you are purchasing a property, the bank will ask you for proof of insurance as part of your bank loan.
Historically, market practice has been that Luxembourg insurers do not propose a deductible, unlike their border neighbours (Germany, Belgium, France).
As a reminder, a deductible is the amount of money that is the responsibility of the insured in the event of a claim. For example, if an insured person has a deductible of 500 euros and suffers a claim causing 2,000 euros of damage, the insurer will only reimburse 1,500 euros, with the insured person being responsible for the remaining 500 euros. The deductible can therefore reduce the cost of the insurance premium. This is explained by the fact that the insured person agrees to take on a certain share of the risk in the event of a claim, which reduces the amount that the insurer will potentially have to reimburse.
The deductible is a lever to optimise the amount of your premium. It allows you to keep a reasonable portion of risk that we call self-insurance.
You can ask your insurer whether or not a deductible applies in order to reduce the amount of your home insurance premium.
Due to changing weather conditions, the risk of flooding is quite present in Luxembourg. This risk should not be neglected and it is advisable to check that you are properly insured. As a basic rule, with most insurers, this is an additional guarantee. Baloise has decided to automatically include this guarantee in the Essential formula of its home insurance policy.
Personal liability covers bodily injury and property damage that you may cause to others, including members of your household, your household employees, or even your pets.
Family liability insurance is not automatically included in home insurance contracts as in other countries. It is an additional guarantee to add to the contract, the usefulness of which should not be underestimated.
To settle on the home insurance rate that is right for you, it can be helpful to compare quotes from different insurance companies. Here are some steps to make this comparison easier:
- Some insurers, including Baloise, offer to simulate home insurance pricing online. You can complete this process by contacting the insurer to obtain a personalised quote.
- Analyse the guarantees included in each offer, such as personal liability, protection against climatic events, coverage of personal effects or garden furniture.
- Pay attention to the compensation caps. These caps determine the maximum amount that your insurer will pay in the event of a claim. It may be wise to compare several offers to see which ones offer the best coverage.
By taking the time to compare, you can find home insurance that offers a good balance between cost and protection and that includes the guarantees that are essential for you.
The average cost of home insurance in Luxembourg varies according to several criteria.
Rates may vary depending on the type of accommodation (house or apartment), the surface area, the value of your personal belongings, and the guarantees chosen. For example, insurance that includes additional options such as coverage for solar panels or works of art will be more expensive.
From one insurance company to another, it is also possible to find differences depending on the formulas chosen, so it is not possible to give an average cost for a home insurance contract.
To avoid disappointments when looking for cheap home insurance, it is essential to understand the differences in coverage. Some contracts may seem attractive in terms of price but may not cover certain events such as damage caused by flooding.
It is also wise to personalise the compensation limits. A low insurance premium may hide compensation limits that are too low, which could leave you with significant costs to cover in the event of a claim.
Finally, be careful not to underestimate the value of your belongings. An accurate inventory of your personal property will allow you to choose suitable coverage and avoid being underinsured.
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