Should I take out property insurance?

Homeowner Insurance

On average, every German household spends 2,932 euros per year on insurance, says Stiftung Warentest. But not all insurance is important. There are also big differences in contributions and benefits. Reason enough for regular insurance coverage reviews. Individual advice helps.

Tailor-made, affordable insurance for members of living in property e.V. offers a cooperating insurance broker. You can find all information about this under Network -> Insurance.

The main insurance for homeowners

Homeowners Insurance

The most important insurance for the home is homeowners insurance. It offers protection against damage from fire, storm, hail and tap water. This insurance can be purchased as a package or the house is individually insured against each of the three risk groups. Whether the insurance package or the individual insurance is cheaper has to be decided depending on the location of the house. Inexpensive new building tariffs are often offered. The duration of the discount is decisive for this. There are big differences in the premiums, so it is essential to compare offers.
Residential building insurance should be taken out for the construction period in order to cover possible damage to the shell. See below: "Insurance for the construction period".

Liability insurance

Smooth paths, poorly lit corridors, missing smoke detectors or freely accessible garden ponds: there are some dangers lurking in the house and on the property. In the event of an accident, the owners can incur high costs, e.g. for medical treatment, compensation and compensation for pain and suffering. If the injured party is (temporarily) unable to work, the loss of earnings may also have to be reimbursed - in the worst case, lifelong pensions and / or care costs must be paid.

Owners are liable as the "original bearer of the duty to maintain safety" with their entire assets and income. You can protect yourself against financial losses through private liability insurance or special home and landowner liability insurance.

  • Personal liability insurance is affordable and almost indispensable. If you already have this protection, you should check whether it also includes landowner liability insurance for the property you use. Most insurers now offer this at no extra charge.
  • Anyone who has rented their property should also cover this risk with liability insurance. Some companies have included it in their personal liability insurance at no extra cost, with most others the protection can be increased accordingly for a small surcharge.

Water damage or heating oil tank insurance

If heating oil leaks from a tank and causes environmental damage, the owner is fully liable even through no fault of his own. Even if the tank has been serviced regularly. Oil tank owners should therefore take out water damage insurance. The insurance benefits are almost identical. The premium depends on the size and location of the oil tank (above or below ground) and on the sum insured. This should amount to at least 3 million euros. Be sure to compare offers!

Insurance cover for administrative boards

Voluntary work for the co-owners can be expensive for management advisors: If they make mistakes, they may have to be held liable, and in the worst case with the entire assets. Living in Property e.V. members can offer you affordable financial loss liability insurance - more about this here.

Household insurance

Basically, you should personally have household contents insurance to protect yourself against damage or loss of all goods in the house. It is not only effective in the event of fire, storm and water damage, but especially in the event of burglary. It is important that gross negligence is also insured. Old contracts often have a loophole here, and new ones do not always cover this either.

Other important insurances

Anyone who takes out a high mortgage loan as a home buyer should take out term life insurance in the amount of the loan amount - to provide financial security for the surviving dependents in the event of the death of the main breadwinner. In any case, this is usually already requested by the credit institutions. Occupational disability insurance can also be recommended. It is best to seek independent advice on this.

Insurance during the construction period

It will get expensive when you have to pay for any home construction damage that is not covered by insurance. It is therefore essential that you take out the necessary construction insurance before the groundbreaking ceremony.

Fire shell insurance = residential building insurance

Construction customers must take out separate insurance against damage caused by fire, lightning, explosion and aircraft crashes; these are not included in the construction insurance. It is best if you already need the one you will need later at the beginning of the construction period Homeowners Insurance to lock. In this case, fire damage to the shell during the construction period is usually included in the insurance free of charge.

Builder's liability insurance

If children, neighbors, passers-by or suppliers have an accident on the construction site, the client must be fully liable for this. For their own safety and to avoid lengthy processes among those affected, construction customers should definitely take out builders' liability insurance. It covers personal injury and property damage, usually for a construction period of up to two years. Also insured are the damages that result from the obligations of the property owner, e.g. his obligation to spread in winter. This insurance should therefore be taken out as soon as possible when the property is purchased, if it is clear that construction will take place within the next two years.
The insurance does not cover: Damage to rented property and accidents at work caused by construction workers (see below). If you do your own work, these are usually only insured against a premium.
We recommend a flat-rate coverage of three million euros for personal injury and property damage. The one-time premium to be paid is between 0.5 and 1 per thousand of the construction sum. It is worth comparing the various premiums.

Construction insurance (also called construction insurance)

If sanitary objects are dismantled on the construction site, the already installed boiler disappears or doors are kicked in, then the construction insurance will compensate for the damage. It intervenes when damage occursextraordinary weather conditions such as earthquake, landslide, hurricane, flood or by unforeseen events such asVandalism, theft already installed building products ornegligenceof construction workers arise (e.g .: truck drives against the outside wall). The insurance does not cover: Damage caused by normal weather conditions (frost in winter, storm in autumn), theft of stored construction products, damage caused by fire, lightning and explosions, damage due to neglected safety measures as well as construction errors and defects. The insurance covers the above-mentioned damage regardless of whether it is borne by the building customer or the respective building contractor. The companies and craftsmen involved in the construction are therefore also insured. The premium to be paid once is 1 to 3 per thousand of the construction sum, depending on the insurance. In the event of damage, the building customer is often deducted a certain amount (250 to 300 euros) as a deductible.

Statutory accident insurance for private construction workers

Construction workers (relatives, friends) must be insured with the responsible construction trade association. Contributions are to be paid for this. Failure to do this will result in fines.

Legal protection insurance for the time the house is being built

There is (unfortunately) no legal protection insurance against botched construction or for disputes with architects, developers or craftsmen for new buildings.