Insurance – something homeowners often don’t know

Insurers don’t pay for everything

Burst pipe cost trap: What homeowners often don’t know

Every year more than a million pipes burst in Germany. Another unpleasant surprise often follows for those affected: Many people make a mistake when it comes to their insurance.

Many homeowners often experience a nasty surprise after the damage, warns the Association of Insured Persons (BdV). Homeowners insurance does pay for the damage caused by the water leak and for the repair of the damaged pipe section. However, if craft businesses recommend replacing additional sections of the pipe and pipe system as a precautionary measure, the insurance will not pay for this.

“Many insured people wrongly assume that, for example, if a pipe in the bathroom bursts, all the pipes in this room will be replaced,” writes Meike Voß, team leader of the BdV advisory service, in a current communication from the consumer protection association. However, insurers only paid for the repairs directly caused by the damage. However, the preventive replacement of pipes is considered maintenance or renovation. Homeowners have to pay these out of their own pockets.

However, it is not advisable to postpone modernization: insured parties are obliged to keep their water systems in a proper condition. If you forego necessary maintenance or repairs, the insurer can reduce or even refuse its benefits in the event of a claim. Insurers can also cancel the insurance after the damage has been paid. “Anyone who postpones necessary modernization not only risks further damage, but in the worst case scenario, also the loss of insurance coverage,” warns Voß. Her advice: Homeowners should regularly check the condition of their pipes and act in a timely manner.

This can also be financially worthwhile for homeowners: if you keep pipes and wiring in good condition, you can save significantly on your home insurance. According to “Finanztip”, anyone who has newly built or completely renovated their house can insure it for 100 to 500 euros cheaper than an older, unrenovated building – depending on the location. “Anyone who has new pipes laid or completely modernizes their house should definitely let them know and request a discount on their contribution,” advises “Finanztip” editor-in-chief Said Sulilatu.

Another way to save money is to install water sensors. These monitor the water flow, register irregularities and inform the homeowner of possible problems. In some devices, the pipe is also blocked and the water flow is interrupted. This reduces the renovation costs. Accordingly, many insurers reward the installation of such devices with lower premiums.