Residential property insurance termination

The homeowners insurance is undoubtedly a very important safeguard and thus for every homeowner of essential importance. Despite this immense importance of the type of insurance itself, however, it is quite possible that one is no longer satisfied with his once chosen insurance company. Be it that a claim has not been processed as desired, or is it just that the insurance has raised the price more and more - there can be many reasons for a change of insurance. But how do you change a homeowners insurance? How should a termination be made and what is the difference between ordinary and extraordinary termination?

Change - the reasons

There can be many reasons for a planned change of homeowners insurance. In most cases, however, it is either the dissatisfaction with performance in the event of a claim or significant increases in contributions that have led the owners of the house to decide to seek new insurance. The fact that one buys the homeowners insurance from the previous owner when buying a house is a common reason for annoyance and in many cases leads to the new owners of the house repelling the insurance as soon as possible to get a better and / or better to seek cheaper company.

The change - the formalities

Basically, property owners have two ways to terminate their homeowners insurance: It can either be a "ordinary" termination to the expiration of the insurance be pronounced or there is an "extraordinary" termination after a claim. The latter is also referred to as a right of cancellation and can be used immediately after a claim.

Ordinary termination, however, must always take place with a notice period of three months at the end of the insurance period. Depending on the company, the insurance period is between one and five years. Even if the insurance contract specifies five years as the minimum period, the policyholder has the option to terminate the contract after only three years. This right is evidenced in the so-called VVG, the insurance contract law. This right may e.g. be used in the case that one has found by a Internet price comparison, a cheaper provider for his homeowners insurance.

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