What insurance do you really need?

Energy, groceries, rents – prices are rising noticeably everywhere. This puts some in financial distress. Can you save on insurance? Which ones do you still need?

In order to make ends meet financially, many people currently have to put their spending to the test. Savings potential lies dormant with insurance, for example – if you change your circumstances, agree to a deductible or switch to annual payment.

Some insurances are even completely dispensable. But there are some that should by no means be terminated without replacement.

Which insurances can you do without?

The dispensable include all insurances “that only cover minor damage,” says Sandra Klug from the Hamburg Consumer Center. For example, glasses or mobile phone insurance.

7 insurances that you really need

  • Number 1: personal liability insurance

Indispensable for everyone: In the event of an insured event, personal liability insurance covers justified claims for damages based on personal injury, property damage or financial loss caused by the insured person.

“That can quickly become really expensive, especially if people are injured,” says Sandra Klug. However, the policy also protects against unjustified claims.

  • Number 2: disability insurance

Important for those in employment: Anyone who can only maintain their own standard of living through their employment should definitely secure their workforce – with disability insurance.

The policy pays if you are unlikely to be able to practice your last job in the long term without any health problems.

  • Number 3: home insurance

You couldn’t afford a total loss of your furniture and furnishings and the associated new purchases? Then home contents insurance makes sense for you.

As a rule, it replaces the replacement value of your home furnishings if they are damaged, for example, as a result of water or fire damage or a burglary.

  • Number 4: term life insurance
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Term life insurance is important for everyone who needs to protect surviving dependents – such as a spouse or their own children. If the insured person dies, the insurance pays out the agreed sum to the surviving dependents. This can help, for example, to settle the remaining debt of a property.

  • Number 5: Foreign travel health insurance

Useful for foreign travelers: the foreign travel health insurance. “It covers the costs for treatment abroad if the statutory health insurance does not pay,” says Julia Alice Böhne from the Association of Insured Persons. The insurance also reimburses the expenses for return transport.

  • Number 6: homeowners insurance

A must for homeowners: Homeowners insurance pays out if your home is damaged or completely destroyed by a fire, for example. It also covers all damage that may be caused by tap water and natural hazards such as storms and hail.

It is important that the policy also covers natural hazards.

  • Number 7: Pet owner liability insurance

Important for dog or horse owners: animal owner liability insurance. Because these animals are not included in personal liability insurance, says Julia Alice Böhne. In complete contrast to cats or tame small animals such as mice, hamsters or rabbits.

Animal owner liability insurance covers damage caused by your own animals to others. In six German federal states (Berlin, Hamburg, Lower Saxony, Saxony-Anhalt, Schleswig-Holstein and Thuringia), this policy is even mandatory for dog owners.