Contents and buildings insurance with an insurer: How to optimise cover and costs
31.05.25
12
Minutes
Katrin Straub
Managing Director at nextsure
Many property owners wonder whether it makes sense to take out household contents and buildings insurance with the same provider. Bundling can indeed bring advantages, from simpler claims handling to noticeable discounts. Find out here when this step is worthwhile for you and what you should look out for.
The topic in brief and concise terms
Bundling home contents and buildings insurance with one provider can lead to discounts of up to twenty per cent and simpler claims handling.
A single point of contact in the event of a claim and the avoidance of responsibility disputes are key advantages of a combined policy.
Despite potential advantages, the individual benefits of the policies should always be compared, as separate contracts may in some cases provide better protection.
Quick Facts: Contents and buildings insurance from a single provider – the key advantages
Choosing to bundle household contents and buildings insurance with one provider often offers several advantages. A key benefit is the potential cost savings from package discounts, which can range from five to twenty per cent depending on the provider. In the event of a claim, you benefit from a simpler process, as you only have one point of contact. This can make coordination easier, especially in the case of damage affecting both areas, such as water damage. Many insurers also offer seamless cover, which avoids disputes over responsibility, for example in the case of damage to floor coverings.
Practical section: When does the combined policy really pay off?
In practice, the benefit of a combined home contents and buildings insurance policy becomes particularly clear in complex claims. Imagine a storm tearing parts of your roof away (a case for the buildings insurance) and rainwater entering and damaging your furniture and electronics (a case for the contents insurance). With two different insurers, coordination problems and delays can arise here. With one provider, settlement is handled from a single source, which considerably simplifies and speeds up the process for you as the policyholder. Some providers even grant up to twenty-five per cent discount on the contents policy when taking out a buildings insurance policy at the same time. This saving can add up to a significant sum over the years.
Another aspect is the avoidance of gaps in cover. Sometimes the allocation of a claim is not clear-cut; for example with glued-down carpets or fitted kitchens. The distinction between contents and building components can be difficult. If both are with the same insurer, such boundary disputes often disappear entirely. This leads to faster and more customer-friendly claims handling. Bundling is therefore not only a question of price, but also of convenience and peace of mind in the event of a claim. Consider whether the potential saving of, for example, ten per cent outweighs the advantages of a separate, possibly more specialised policy.
Calculation example: Potential savings from bundling
Let’s assume your separate buildings insurance costs 300 euros a year and your contents insurance 150 euros. The total cost is therefore 450 euros per year. If you choose a provider that offers a ten per cent package discount, you save 45 euros a year. With a discount of twenty per cent, the saving would already be 90 euros. Over a contract term of five years, this adds up to 225 euros and 450 euros respectively. This direct financial relief is a strong argument for bundling.
However, do not focus on the discount alone. Compare the underlying benefits carefully. A cheaper combined policy with worse terms is not a good trade-off. Sometimes it can make sense to take out two separate policies with specialists despite slightly higher costs, if this means significantly better protection for your individual situation. A careful assessment of cost and scope of cover is therefore essential before you decide for or against a combined buildings and contents insurance policy.
In-depth expertise: legal aspects and design tips
From a legal perspective, there is no rule requiring or prohibiting contents and buildings insurance with one provider. The decision rests solely with the policyholder. Recent rulings in insurance law often concern details such as distinguishing between robbery and theft or assessing gross negligence. These rulings can influence the interpretation of insurance conditions, regardless of whether you have bundled policies or separate ones. Our expert tip: Make sure the insurance conditions (AVB) are clear and easy to understand, especially where clauses on obligations (e.g. use of a safe) and increases in risk are concerned. An unclear wording can lead to disputes in the event of a claim.
When structuring your contracts, you should take the following points into account:
Waiver of underinsurance: Make sure that both policies include a waiver of underinsurance to avoid reductions in the event of a claim. This is often linked to the correct determination of the sum insured.
Natural hazards cover: Check whether natural hazards insurance makes sense for both areas and is included in the quotation. Damage caused by natural events such as flooding or heavy rainfall is increasing.
Sum insured: Adjust the sums insured individually to the value of your contents and the rebuild costs of your building. A flat-rate sum is rarely ideal.
Excesses: Clarify the level of the excesses for both types of insurance. A higher excess can reduce the premium, but means higher out-of-pocket costs in the event of a claim.
Advice from specialists, such as that offered by nextsure, can help avoid pitfalls and ensure optimal cover. It is important that the insurance conditions, often set out in the general insurance terms and conditions (AVB) or specific product conditions (e.g. VGB for buildings insurance, VHB for contents insurance), meet your needs. For example, the question of whether a fitted kitchen counts as contents or part of the building can be answered differently depending on the contract.
Possible disadvantages and when separate policies might be better
Although combining contents and buildings insurance often offers advantages, there are situations in which separate policies may be the better choice. One possible drawback of the combined solution is that the insurer may not offer the best conditions or the most comprehensive cover in both areas. For example, one provider might have an excellent buildings insurance policy but only an average contents policy. In such cases, by choosing two specialist providers, you could achieve better overall insurance cover, even if this may involve slightly higher total costs or more administrative effort. So always check the detailed differences in cover, not just the final price.
Another point is flexibility. If you bundle your insurance with one provider, switching can be more complicated if you are unhappy with one part of it. In that case, you may have to cancel both policies and take out new ones, which can mean losing combined-policy discounts. With separate policies, you can respond more flexibly to changes in your needs or better offers on the market by adjusting or switching only the relevant policy. Weigh up whether the convenience and discount of a combined policy outweigh this potential limitation on flexibility for you. A buildings insurance policy is not always mandatory for property owners, but it is highly recommended.
The path to the optimal decision: Individual needs analysis
The question of whether contents and buildings insurance is worthwhile in an insurance policy cannot be answered in general terms. It depends heavily on your individual needs, your risk profile and the specific offers available from insurers. Start with a detailed analysis of your requirements: How much is your contents worth? What specific risks exist for your building (e.g. a location in an area at risk of flooding)? Do you need special additional benefits such as glass insurance or extended cover for bicycles? Make a note of at least three priorities for your insurance cover.
Then obtain several comparison quotes — both for combined packages and for separate policies. Pay attention not only to the price, but also compare the scope of benefits, exclusions and excesses in detail. Thorough research and a comparison of at least three different offers are crucial. Also use independent comparison portals and consider professional advice. This will ensure that you find the best and most cost-effective solution for your situation. Also bear in mind that life circumstances can change; it is advisable to review your insurance situation regularly, for example every three to five years.
In summary, bundling household contents and buildings insurance with one provider is a sensible option for many property owners. The main advantages lie in potential cost savings of up to twenty per cent through discounts and simplified claims handling with a single point of contact. This can save a great deal of time and stress, especially in the event of damage affecting both areas. Avoiding disputes over responsibility in borderline cases, such as damage to fitted kitchens, is another important advantage.
Nevertheless, it is important not to accept the first combined package you come across blindly. Compare the benefits and terms of the individual policies carefully. Sometimes a provider may be excellent in one area but only offer average cover in the other. In such cases, or where very specific cover requirements are involved, separate policies may be the better choice despite potentially higher costs. Individual advice, as offered by nextsure, helps you find the optimal solution for your comprehensive protection.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific suggestions for optimisation.
More useful links
The GDV (German Insurance Association) provides information on protecting against damage caused by natural hazards.
The Federal Statistical Office (Destatis) provides price indices and other economic statistics.
Under Laws on the Internet you can find the Insurance Contract Act (VVG) of 2008.
The German Weather Service (DWD) provides information on climate change and its impacts.
The Federal Environment Agency offers insights into monitoring the German Adaptation Strategy in the financial sector.
The BBK (Federal Office of Civil Protection and Disaster Assistance) provides an assessment of heatwaves and heavy rainfall events.
The Stiftung Warentest examines price trends in residential buildings insurance for homeowners.
FAQ
Is it always cheaper to take out home contents and buildings insurance with the same provider?
Not necessarily. Although many insurers offer bundle discounts, you should always compare the overall cover and premiums. Sometimes two separate policies with specialist providers can be more suitable or even cheaper despite the lack of a discount, when you take the scope of cover into account.
What disadvantages can there be to having both insurance policies with one provider?
One possible disadvantage is that the provider may not offer the best terms in both areas. In addition, switching can be more complicated if you are only dissatisfied with one part, as this can affect the combined discount.
What should I look out for when comparing bundle offers?
In addition to the price and discounts, pay particular attention to the scope of cover of both policies, exclusions, the level of cover limits, excesses, and whether important additional modules such as natural hazards cover are included.
How can I find out whether a combined policy makes sense for me?
Assess your individual needs, compare several quotes (combined and separate) and pay attention to the details of the insurance terms and conditions. Professional advice can help you make the right decision.
Do contents insurance and buildings insurance cover the same risks?
Both insurance policies cover similar basic risks such as fire, escape of water, storm and hail. The difference lies in what is insured: building insurance protects the building itself and permanently installed fixtures, while contents insurance covers the movable contents inside it.
What is the difference between replacement value and current value in these insurance policies?
Contents insurance generally compensates for damage at replacement value, i.e. the cost of replacing items with new, equivalent ones. Buildings insurance also usually pays at replacement value for repairs or the rebuilding of the property at current construction prices.
