Building a place in Germany Here's something you need to know! - The Property Guy Germany
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Building a place in Germany Here’s something you need to know!

Building a place in Germany Here’s something you need to know!

Building a house in Germany The 5 essential insurances you need


This is a guest post from Patrick Ott an independent broker and founder of  You can follow him on ToytownGermany as well

Due to increased demand and less than optimal supply a lot of people are considering going the new build route. Now if you’re buying an apartment off plan insurance is less of an issue. But a lot of people, rather than buying someone else’s place would like to build their own place. In this situation insurance is essential. Of did I mention Germans just love insurance. Germany has the highest per captia insurance policies in the world. So yes you can get insurance specific to new builds.


Drawing of a family in a house german prefab homes

So now that you’ve decided to build new  here are the five most important insurances you need. It’s important to understand that your current homeowners’ insurance may not enough to protect against the risks associated with building a home. Here are five points you need to consider

  1. Liability insurance: The cover must be suitable  

It’s important to understand that your current homeowners’ insurance may not enough to protect against the risks associated with building a home. In the case of house construction, a liability insurance should exist already. However, the agreed sum insured and the insurance cover are often insufficient. Therefore a building liability insurance is necessary. The coverage should be, at a minimum, three million euros. In addition, even if the property is still undeveloped, the owner is responsible for ensuring that people are not injured. If construction is delayed, it is advisable to buy a house and property liability insurance. For example, it steps in when a tree falls on the neighboring house.

  1. Builders Accident Insurance: Stumbling blocks everywhere.

Every homeowner can contribute his own labor to his building project. Banks recognize self-finished activities such as laying parquet flooring or wallpapering walls as equity capital to a certain extent. This improves credit conditions. Relatives and friends can also contribute to this “muscle mortgage”. But accidents can happen on a construction site. It is therefore important to register all those who are willing to help with the Berufsgenossenschaft Bau and pay insurance premiums. The owner himself and his wife each needs to have a private accident insurance cover.

  1. Building owner’s legal protection insurance: disputes are almost always fought over

Building a house is an important project in which several companies and individuals are involved – and large sums of money are also involved. During this time, conflicts can arise with service providers such as architects or craftsmen. In case the dispute has to be settled in court, a builder’s legal protection insurance protects against additional costs to get a lawyer or possible legal costs.

  1. Building Construction insurance: Protect against mother nature.

It often takes several months to build a house. So, building owners have to expect extreme weather: storm in autumn, frost in winter, hail in spring and heavy rain in summer. If this causes damage to the building, the building construction insurance will cover the costs. The protection is also effective in case of a natural occurrence such as earthquakes and floods. Depending on the tariff, damage caused by human misconduct, such as theft or vandalism, can also be insured. However, fire and lightning strikes are not covered by the policy as standard.

  1. Fire insurance: extra protection for fire and lightning

During the construction phase, fire insurance protects the building and materials against lightning, fire, arson, explosion and implosion. In addition, the policy covers follow-up costs such as fire-fighting and clean-up work. If the construction work has already progressed and the client already

Stick man wearing glasses and To Do List, german prefab homes

Stick man twith todo list

Patrick Ott an independent broker and founder of I always recommend working with an English speaking broker who understands the needs of expats. He also is active on ToyTown Germany.

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