Coverage Amount
The coverage amount is the maximum sum an insurance company will pay in case of a claim. It limits the insurer payment and should match the potential damage.
Key Takeaways
- •The coverage amount is the maximum sum an insurance company will pay in case of a claim. It limits the insurer payment and should match the potential damage.
- •Coverage Amount belongs to the Insurance category. We explain it step by step for newcomers to Germany.
- •Personal liability insurance with 20 million EUR coverage pays a maximum of this amount if you, for example, accidentally cause a fire with high property damage.
meinetarife24 Editorial Team
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Detailed Explanation
The coverage amount (also: sum insured) limits the insurer's payment. It should correspond to the potential damage.
Important areas: - Car liability: At least 7.5 million EUR (legally required) - Personal liability: Recommended 10-50 million EUR - Household contents insurance: Value of household items - Disability insurance: Monthly pension
Avoiding underinsurance: - Regular review of amounts - Consider value increases - Agree on underinsurance waiver
Overinsurance: With property insurance, only the replacement value is reimbursed - a higher insurance sum provides no advantage.
Practical Example
Personal liability insurance with 20 million EUR coverage pays a maximum of this amount if you, for example, accidentally cause a fire with high property damage.
Legal Basis
§1 PflVG, §74 VVG
Related Terms
Sources & Methodology
Our methodology: the meinetarife24 Editorial Team checks every definition against binding primary data sources and consumer-focused reference portals. We name the relevant legal basis, link related terms and update each entry regularly. We do not sell loans or tariffs ourselves. This explanation is provided purely for information.
- • Legal basis: §1 PflVG, §74 VVG
- • Price Indication Regulation (PAngV) at Gesetze im Internet
- • Finanztip and the Deutsche Bundesbank as independent references on interest rates and consumer credit.