All about this insurance: Self-build insurance
What insurance do I need to build a house in Germany?
Insurance broker / Insurance questions / Self-build insurance
How much does builder's liability insurance cost in Germany?
In short
You pay once for the whole build, usually about 0.1 percent of the building cost. For a family home costing EUR 250,000 to 400,000 that is about EUR 100 to 400, more with a lot of DIY work. Builder's liability insurance (Bauherrenhaftpflicht) usually runs for up to 24 months and then ends by itself.
What it costs
Guide figures from published examples for Germany, one-off premium for the build, as of September 2026.
| Example | Typical range |
|---|---|
| Family home, building cost EUR 300,000 | about EUR 100 to 300 once |
| Building cost EUR 500,000 | from about EUR 350 once |
| Building cost EUR 800,000 with EUR 10,000 DIY work | from about EUR 580 once |
| Average family home according to a market overview | about EUR 100 to 250 for the whole build |
| Published overall range | about EUR 150 to 800 for the whole build |
Guide values from publicly quoted tariff examples. The table values for EUR 150,000, 250,000 and 350,000 are derived from these examples and are a guide value from our quoting practice. Your premium depends on DIY work and cover; we obtain the exact quote for you.
Worked example
Family builds a house with a general contractor
The family owns the plot, the contractor handles all trades, and some interior work is done by the family.
| Building cost without land | EUR 350,000 |
| DIY work (painting, flooring) | EUR 15,000 |
| Sum insured | EUR 5 million |
| One per mille rule | about EUR 350 |
| Range depending on insurer | about EUR 120 to 400 |
About EUR 120 to 400 once for up to 24 months of building. Because the DIY work is under EUR 25,000, many tariffs add no surcharge.
How the premium is calculated
Builder's liability insurance is not paid every year but once at the start for the whole build. It is based on the building cost, meaning the cost of the construction itself without the land.
A rough rule is one per mille, so EUR 1 per EUR 1,000 of building cost. In practice, cheap tariffs for a family home can be under EUR 100, while broad tariffs with high cover and DIY work can be over EUR 500.
| Building cost | One-off premium, without significant DIY work |
|---|---|
| EUR 150,000 | about EUR 90 to 200 |
| EUR 250,000 | about EUR 100 to 300 |
| EUR 350,000 | about EUR 120 to 400 |
| EUR 500,000 | about EUR 350 to 550 |
| EUR 800,000 | about EUR 580 to 900 |
What pushes the price up
Next to the building cost, the biggest lever is DIY work. If you build yourself or friends help, you are not just the client but act like a builder on site. Many tariffs include DIY work only up to a limit, often EUR 25,000, and charge extra above that.
Other factors are the sum insured, the type of construction, the duration and whether you plan or manage the build yourself. A prefab house with a short build is cheaper than a renovation of an existing house that drags on for two years.
| Factor | Effect on the premium |
|---|---|
| Building cost | direct, the premium grows with it |
| DIY work above EUR 25,000 | surcharge, often only insurable if declared |
| Sum insured EUR 10 million instead of 5 million | moderately higher |
| Build longer than 24 months | extension for a surcharge |
| Managing the build yourself without an architect | higher with some insurers |
When you don't need your own policy
Many personal liability policies (Privathaftpflicht) include smaller building projects, such as a carport, a conservatory or a renovation. The limit is a certain building cost, very high in some newer tariffs, often only five figures in older ones. Check the number in your contract before buying extra.
If you buy a turnkey house from a developer (Bauträger) who builds on their own land and only transfers it after completion, you are not the owner of the project during the build and usually don't need the policy. It is different if the plot already belongs to you: then the duties on site are yours, even if a general contractor builds.
Why the small premium still matters
As the owner of the project you must secure the site. If a child falls into an unsecured excavation or part of the scaffolding lands on a parked car, you are liable with your own assets, even if contractors did the work.
A serious personal injury can cost millions. Compared with that, a few hundred euros once is a small price. Honestly, it is one of the few construction policies where the question of whether it is worth it hardly arises, unless your personal liability policy already covers the build.
Step by step
- Write down the building cost without land and incidental costs.
- Estimate DIY work honestly, including your helpers' hours.
- Check in your personal liability policy up to which building cost projects are covered.
- Choose a sum insured of at least EUR 5 million.
- Sign before the first spade goes in, not once the shell is up.
Checklist
- Cover starts no later than the first work on the plot
- Term matches the build, extension agreed
- Full DIY work declared
- Sum insured at least EUR 5 million
- Damage to hired scaffolding or equipment included if you rent any
Common mistakes
- Signing only after the excavator has been there
- Declaring too little DIY work to save on the premium
- Insuring twice although your personal liability policy already covers the build
- Believing the general contractor takes over your duties as owner
Questions and answers
Frequently asked
Do I pay builder's liability insurance every year?
No, usually once at the start for the whole build. The contract ends by itself when building is finished or the agreed term runs out.
What if the build takes longer than 24 months?
You extend for a surcharge. Report it before the end date, otherwise the site is uninsured from then on.
Is it tax deductible?
For a home you live in, usually not. For a house you rent out it usually counts as a deductible cost. Ask a tax adviser.
Is it cheaper for a prefab house?
Often yes, because the build is short and there is little DIY work. The premium still depends on the building cost.
Does it cover accidents of my helpers?
No. If a helper is injured, statutory accident insurance through BG BAU is responsible, and you must register helpers there.
Do I need it for an extension or a garage?
Often not, if your personal liability policy includes building projects up to that cost. Above that, yes.
Sources
NAMMERT insurance broker
Request a quote: Self-build insurance
We compare several insurers and come back with a proposal. Free for you; the insurer pays our fee. You can write in English.
Thank you, we have your request.
We will be in touch within one working day. If it is urgent: +49 3375 29 12 77.
Related questions
Do you need builder's liability insurance in Germany?
Yes, if you are the one commissioning the build or a major renovation. As the owner of the project (Bauherr) you are l …
Which insurance do you need to build a house in Germany?
Three matter most: builder's liability insurance (Bauherrenhaftpflicht), fire cover for the shell (Feuerrohbauversiche …
Are friends helping to build your house insured in Germany?
Yes, private helpers are covered by statutory accident insurance, but you must register them with the construction tra …
NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker. Statutory disclosure (German) · Updated
Was this useful?