Does my home buildings insurance still apply if a business runs from the house?
In short
Yes, in most cases your home buildings insurance (Wohngebäudeversicherung) does still apply if a business runs from the house, but only if you report it. A desk office without customers rarely changes anything; a shop or workshop often costs a surcharge. Once the house is no longer mainly residential, insurers usually require a commercial policy. If you say nothing, payouts can be cut.
Surcharge for an office or practice in a residential building
about 0 to 10 percent
Surcharge for a shop, workshop or restaurant
about 20 to 60 percent
As of October 2026.
Starting prices come from the sources; the surcharges are a guide value from quoting practice.
The insurer states the surcharge for your business.
Worked example
Detached house with a beauty salon on the ground floor
An owner turns 30 of 160 square metres into a salon with clients and reports it.
Business share
around 19 percent of the floor space
Previous home buildings premium
EUR 600 a year
Surcharge for the salon, guide value 10 to 25 percent
about EUR 60 to 150
New premium about EUR 660 to 750 a year, with full cover even if a fire starts in the salon.
Why the insurer cares about a business in your home
Home buildings insurance is priced for a house people live in. A joinery in the extension, a hairdresser with lots of electrical equipment or a snack bar with a deep fryer raise the fire risk. German law calls this an increase in risk (Gefahrerhöhung), covered in §§ 23 to 27 VVG.
If the business starts after you took out the policy, you must tell the insurer without delay. If it already existed when you signed and you were asked about it, it falls under the duty of disclosure before the contract, § 19 VVG.
Which use triggers what
What matters is not whether a business is registered (Gewerbeanmeldung) but what happens in the building. A desk in the spare room is usually irrelevant for home buildings insurance; a spray booth in the garage is not.
Still report harmless activities briefly in writing. That way nobody can later claim you kept something back.
Use in the house
Typical result
Home office without customers
usually no change
Practice, law office, consulting with clients
report it, often no or a small surcharge
Shop, hairdresser, beauty salon
surcharge depending on activity
Workshop, restaurant, storage with fire load
significant surcharge or commercial policy
More than half the floor space used for business
commercial buildings policy with many insurers
What happens if the business was not reported
Under § 26 VVG the insurer does not have to pay if you deliberately concealed the increase in risk. In cases of gross negligence it may cut the payout according to the degree of fault. It may not cut anything if the increase in risk did not cause the damage or its extent.
So if the garage workshop catches fire, the missing report is a real problem. If a pipe bursts upstairs with no link to the business, the claim is normally still covered.
When home buildings insurance no longer fits
If business use dominates, many residential policies take the house out of the tariff. You then need a commercial buildings policy (gewerbliche Gebäudeversicherung), which also covers loss of rent from commercial tenants and higher rebuild costs.
Contents are a separate issue: neither home buildings insurance nor household contents insurance (Hausratversicherung) fully pays for machinery, stock and business equipment. Business contents insurance (Inhaltsversicherung) is designed for that.
When you do not need to change anything
If you sometimes work from home on a laptop, the risk to the building does not change. A short note to the insurer does no harm, but you do not need a new policy.
A rented office with normal equipment in the house usually stays on the residential tariff too. Still check the terms for a clause on business use.
Step by step
Describe the business, floor space and equipment briefly.
Report it to the insurer in writing before the business starts.
Wait for the reply on surcharge or change of policy and keep it.
Insure equipment and stock with business contents insurance.
If more than half the space is used for business, get a commercial quote.
Checklist
Business reported in writing to the buildings insurer
Insurer's confirmation filed
Business share of floor space known in percent
Business contents not counted under household contents
Public liability for client visits checked
Common mistakes
Assuming a registered business is automatically known to the insurer
Calling the garage workshop a hobby
Letting a tenant with a business move in without telling the insurer
Questions and answers
Frequently asked
Do I have to report a home office to my buildings insurer?
A pure desk job without clients or storage does not change the building risk.
A short note still does no harm and keeps things clear.
Am I covered if my tenant runs a business?
Yes, if you as owner report it.
You must report an increase in risk caused by a tenant as soon as you know about it.
Can the insurer cancel after I report the business?
It may under § 24 VVG, but it more often raises the premium or excludes the risk.
If the premium rises by more than 10 percent or the risk is excluded,
you may cancel without notice within one month, § 25 VVG.
Does household contents insurance pay for my office equipment?
Only within narrow limits, if the terms say so.
Business contents insurance is meant for machinery, stock and business equipment.
What if I forgot to report the business?
Report it straight away.
As long as nothing has happened, the insurer usually just adjusts the premium.
