Are you about to move to Luxembourg? Whether you own or rent, it’s essential to find the right home or property insurance to protect your home and belongings.
To help you in your approach, we give you here the essential points to know:
- Who needs home insurance?
- What risks are covered by home insurance?
- Which contract to choose and how to evaluate the assets to be covered?
- Which company to contact?
- What to do in the event of an emergency in your home?
Home insurance is essential in Luxembourg
Certain types of insurance are compulsory in Luxembourg. This is the case for home insurance, especially for homeowners. If you rent your home, we also advise you to take out an insurance policy.
By taking out a home insurance policy with an approved insurance company, you protect your home and possessions against the many claims that can arise . But home insurance also enables you to protect your loved ones. It covers your civil liability towards third parties.
By taking out a home insurance policy, you benefit from partial or total reimbursement in the event of damage. Home insurance also provides civil protection for the occupants of your home.
Who needs home insurance?
Whether you’re a tenant or a homeowner, we strongly advise you to take out home insurance as soon as possible. Non-occupant owners, i.e. those who rent a property to a third party, are also concerned.
Home insurance for tenants
In Luxembourg, tenants or flatmates can take out insurance to cover their home, furniture and personal belongings. You’re covered against fire, storm, water damage and theft.
Luxembourg law does not require tenants to take out insurance. While in some countries, such as France, tenant’s liability insurance is compulsory, it is only optional in the Grand Duchy of Luxembourg.
Careful! Although it is not compulsory to take out home insurance, the tenant is nevertheless obliged to reimburse damages in the event of fire or water damage, for example. Insurance is therefore strongly recommended…
Home insurance for owner-occupiers
With home insurance, homeowners are covered for damage to their property. In the event of a claim, the insurer will pay compensation to cover all or part of the damage.
The owner of a rental property can take out home insurance. This covers fire, glass breakage, theft and water damage. There are risks to be covered that are the responsibility of the landlord, not the tenant.
Please note that even in the absence of insurance, the landlord must repair the damage as quickly as possible for the well-being of the tenant.
Main claims covered by home insurance
Generally speaking, home insurance contracts offer a comprehensive insurance package. This includes coverage for various risks that may occur in the home.
In the event of flooding or water damage, you will be reimbursed for damage to the building and damaged equipment. Please note that two cases must be distinguished:
- damage caused by a leak on its own installation to the detriment of third parties
- damage to your own home caused by a poorly insured or uninsured third party
We recommend that you pay close attention to the amounts covered by this insurance. To be properly insured in the event of theft, you must properly assess the present value of your assets. Take photos and save them on the cloud. Keep invoices for your most valuable possessions, such as jewelry or works of art.
These two insurance guarantees are major. Don’t neglect the aspects on these two covers. Take the time to study insurance contracts, including coverage and exclusions.
Protection from third parties
Home insurance policies generally include property liability. This covers you in the event of damage caused to third parties. This is particularly the case when someone slips on your sidewalk because you haven’t cleared it of snow .
While the risk of storms in Luxembourg is relative, it does exist. In 2019, a tornado devastated many homes in the Pétange region. Roof risk insurance generally covers material damage to your roof caused by natural causes such as hail, snow or a tree falling on the roof.
Glass breakage insurance covers various risks such as glass replacement. By extension, ceramic hobs, sanitary appliances, greenhouses, solar panels and/or photovoltaic systems for private use are covered by this warranty.
This insurance covers risks caused by electrical installations and electrical and electronic equipment. In parallel, the guarantee covers material damage to computer, multimedia and office equipment.
We also advise you to check the electrical layout of your home with an electrician. Keep the inspection certificate proving that your system is compliant, especially if your home is more than 20 years old.
Earthquake or sewer backup
Unlike its neighboring countries, coverage for natural disasters is optional in Luxembourg. Depending on the location of your home, we recommend that you opt for this type of insurance. Many homes have been flooded in recent years due to bad weather.
In France and Belgium, it is compulsory to take out such cover. In France, insurance must cover floods, earthquakes and drought. In the Kingdom of Belgium, housing insurance must cover floods.
Which home insurance policy should I take out?
Commercial home insurance offers
Home insurance policies come in a variety of commercial forms. These are more or less comprehensive, depending on the insurance company. Depending on your needs, choose the right guarantees.
However, home insurance policies always cover the basic risks: fire, water damage, theft, glass breakage, storms and civil liability.
Both homeowners and tenants are encouraged to take out “modern” insurance. This type of insurance contract covers not only the risks associated with the property, but also many other aspects of our “modern” lives.
- 68% of Internet users in Luxembourg claim to have divulged banking information on the Internet. To avoid the hassle of divulging confidential information, some insurance companies offer an “e-protection” option . This is included in your home insurance! E-protection” is legal protection. This option protects the policyholder against Internet-related risks: fraudulent payment, disputes over purchases from e-tailers, identity theft, but also damage to e-reputation.
- When moving, remember to cover the contents of the removal vehicle. Moving companies usually offer specific coverage.
Estimate the value of your possessions for home insurance purposes
Distinguish between real and tangible property
Physical assets are those assets that can be moved or taken away and have a certain value. In fact, some goods are not included in the contract, such as doors for example. However, it is important to integrate everything. Remember to integrate your curtains and blinds, especially if they were custom made!
To ensure your housing, it is important to properly assess the value of its contents and personal belongings. Indeed, this value impacts home insurance and the resulting reimbursements.
How to properly evaluate the contents of your home?
Draw up an inventory of your assets. This list is used to identify valuables. The reference, the date of purchase and the invoice of the object can help to calculate the value of the goods. These elements can also be very useful in the event of a disaster.
When calculating, it is important to take into account the user price of the goods and not the purchase value. Depending on the property, their value may depreciate over time. The insurance will take into account the value at time t, not the purchase value in case of compensation.
Don’t forget to include the value of your kitchen when calculating the amount of insurance. This value will be deducted from your total coverage in the event of a claim.
Moreover, if the movable capital is composed of many precious objects or works of art, it is strongly advised to subscribe to a specific contract.
Take pictures of your valuables and keep the bills. In the event of a burglary, this will be very useful for asserting your rights with your insurance company! Save these documents in a physical file, in a safe place, and directly electronically on the Internet.
Regularly revaluing the sums insured under your home insurance policy
Year after year, the movable heritage evolves. What’s more, since taking out your insurance policy, you’ve acquired new sofas or bought a new valuable object. It’s important to reassess your contract regularly, so that you always benefit from an insurance contract that’s adapted to your current situation.
Which criteria for which home insurance rate?
The cost of a home insurance policy depends on many factors. Among them, the type of building, the value of the content, but also the guarantees subscribed.
Here are the different components that will intervene in the fixing of the contract, the insurance premium being the main but not the only one.
- The annual premium: you can get a significant discount when taking out your first home insurance
- Deductible: The deductible is the amount you have to pay in the event of a claim. Remember to compare it carefully between companies. It may be zero for some companies.
- Some guarantees may be offered
- The alarm guarantee can be a condition to obtain very advantageous conditions. Remember to tell your company if you are getting equipped after the policy is in place. Don’t forget that theft is one of the main losses, including in Luxembourg!
Some insurance companies offer discounts if you have not previously made a claim, or if you have purchased a fire system (mandatory in residential properties), etc. Discounts vary from policy to policy and from company to company. It is therefore advisable to contact an insurance advisor directly and compare offers.
Which insurance company to choose?
Luxembourg has a large number of insurance companies. Each has its own specificities and contracts.
It is therefore advisable to contact them directly in order to make an appointment with an advisor or request a quote.
What to do in case of an emergency or disaster in your home?
Most insurance companies offer a guarantee in case of emergency. Water damage? Slammed door? burglary? What are the right reflexes to have? Contact your service representative. He or she will take charge of your request and take care of the first essential steps.
In the event of a major loss, you may have to leave your home temporarily and your life will be turned upside down. To help you manage these problems, personal and financial assistance will be very useful.
The companies’ assistance services will enable you to change the lock. They will also take care of your temporary accommodation (hotel), or childcare during your working days. It’s also important to know the amount of the insurance indemnity, which covers all current expenses incurred after the loss.
Before you have to deal with an emergency, check with your insurance company to get the helpline number. Keep it close by.
Lost, stolen or forgotten key
If a key is lost, stolen or forgotten, the policyholder can contact the assistance service of the insurance company with which the home insurance policy was taken out. Indeed, some companies offer specific guarantees. These cover all or part of the costs in the event of a problem.
Some insurance companies send a repairer themselves and then pay him directly. So remember to call your insurance before you even contact a locksmith!
In the event of water damage, the first thing to do is to identify the source of the problem and deal with it wherever possible.
Find out where to turn off the water in your home. Then call your insurance company to see what steps can be taken to repair the damage.
In the event of fire, it’s important to call the fire department as soon as possible and take shelter.
Once the fire is under control and access is allowed again, the victims must contact their insurance company. A claim, an inventory of the damaged property (accompanied by their invoice, as far as possible), a firefighters’ fire report and photos of the property must be sent to the insurer.
Keep your invoices and photos of your property on the Internet.
In the event of a burglary, the first thing to do is to notify the police as soon as possible by calling 113.
Once the police have intervened, it’s important to notify your home insurance company. The latter may also be responsible for securing the home (changing locks, doors, windows, etc.).
The inventory of stolen objects, photos and invoices – as far as possible – are then to be transmitted. Material damage and proof of break-in must also be reported. Keep all evidence of the break-in for the insurance adjuster ‘s inspection visit, until the claim has been settled.
Here are three tips to reduce the risk of burglary:
- With new technologies, you can simulate your presence by programming the lighting in certain rooms or turning on your TV,
- As the door is the main nerve center, it is possible to use fingerprint recognition to open the door. This reduces the identification of lock systems,
- Every year, the Police Grand-Ducale offers to watch over your home when you go on vacation.
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