10 Aug Building a place in Germany Here’s something you need to know!
Building a house in Germany The 5 essential insurances you need
Lots of our clients are buying properties in Germany and we are happy to help them in finding the best mortgages on the market if they need financing. But as a holistic financial advisor, we always also talk with them about insurance needs (starting with income protection against disability or death so that the family will not suffer financial hardship top).
For those of you who are considering building their new houses rather than buying a resale 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
- Liability insurance: The cover must be suitable
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.
- 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.
- 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.
- 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.
- 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