Types of household insurance

Despite the fact that to a large extent the household or home insurance plans are similar, there are still quite a few differences in the insurance products of both countries. This is due to the fundamentally different types of household insurance, which we would like to present to you in more detail below.

Types of household insurance in Germany

In Germany, insurance customers are generally able to choose between different plans that each insurance company offers individually. There is typically a basic plan plus one or two additional packages providing extended coverage. Some insurance companies provide a single household insurance plan, which may be customized through additional packages. Irrespective of these types of household insurance, each provider decides individually what specific cover it chooses to sell with what package. The only things that need to be observed are the General Household Insurance Conditions. The situation in the U.S. is a bit different.

Types of household insurance in the USA

In the United States there are seven types of household insurance (HO-1 – HO-6, HO-8), which are very similar with each individual insurance company as far as the scope of coverage is concerned. And these different types are not set up progressively by definition, but they are rather aimed at different customer types, for example at homeowners or tenants. With insurance type HO-1 (Home Insurance-1) for example, one receives basic coverage against damages caused by fire and lightning. HO-3 is the type of household insurance that is most widely used by homeowners: it covers home, structure and content. This type most closely resembles German household insurance. Tenants tend to benefit from insurance type HO-4 that includes coverage of explosions, smoke and theft.