How much does builder's risk insurance cost for a new house in Germany?
In short
How much does builder's risk insurance cost for a new house in Germany? For a building sum of 250,000 to 400,000 euros, usually about 170 to 500 euros, paid once for the whole build. Basic policies sit around 1 per mille of the building sum, policies with many add ons well above. The final bill follows your real building costs, and your own work counts too.
One off premiums for a new single family house in Germany from published examples, as of October 2026.
Example
Typical range
Building sum 250,000 to 400,000 euros, depending on insurer and scope
about 170 to 500 euros once
Building sum 250,000 euros, low cost policy
from about 220 euros once
Building sum 250,000 euros, basic to comprehensive
under 300 to about 900 euros once
Building sum 350,000 instead of 250,000 euros
about 65 to 100 euros extra
Ranges from the sources listed.
The amounts for the top up and the extension in the example are guide values from our quoting
practice.
Your premium depends on building sum, duration, own work and excess; we obtain the exact quote.
Worked example
Masonry house, 300,000 euros building costs plus 30,000 euros own work, planned 14 months
How the premium adds up when final costs are higher and the build runs three months over.
Estimated building sum including own work
330,000 euros
One off premium at the start, 500 euros excess
about 280 to 450 euros
Real building sum in the final settlement
345,000 euros
Top up for the extra costs
about 15 to 25 euros
Three month extension
about 30 to 80 euros
In total about 325 to 555 euros for the whole build, roughly 0.9 to 1.6 per mille of 345,000 euros.
How the premium is worked out
Insurers charge a small share of the building sum (Bausumme), once for the whole build. The building sum covers everything from excavation to completion, including the value of your own work (Eigenleistung). The plot, development charges and utility connections are left out.
For the same building sum, a comprehensive policy can cost three to four times a basic one. The difference lies in the add ons: theft of loose materials, fire, higher limits for clean up costs, or a low excess.
Building sum
Premium in published examples
250,000 euros, basic policy
from about 220 euros once
250,000 euros, comprehensive policy
up to about 900 euros once
350,000 euros
about 65 to 100 euros more than at 250,000 euros
250,000 to 400,000 euros, average
about 170 to 500 euros once
Final settlement: why the building sum must be right
You first pay on the estimated building sum. After completion you report the real costs and receive a refund or pay the difference. Estimating low on purpose saves nothing.
A building sum that is too low only hurts in a claim, because the insurer can then reduce the payout. If costs rise noticeably during the build, for example after a design change, report it straight away.
What makes builder's risk cover more expensive
A lot of own work raises the building sum, and some insurers also charge a higher rate when non professionals work on site. A long build, a masonry shell left open over winter and an excess below 250 euros cost more too.
Add ons are only worth it if the gap is not closed elsewhere. Fire is often covered by fire insurance during construction (Feuerrohbauversicherung), which many buildings insurance contracts include free for the build.
Term and extension
The one off premium covers the agreed term, usually 12 or 24 months, sometimes up to 36. If the build takes longer, insurers extend for a one off surcharge. Apply before the term ends, otherwise the site is left without cover.
When you can skip the premium
If your general contractor or prefab house maker insures the works until handover (Abnahme), you already pay for it in the house price. A second policy would be double cover. Ask to see the policy or a written confirmation.
If you buy from a developer who owns the plot until handover, you do not need your own builder's risk insurance.
Step by step
Add up all trades and the value of your own work.
Ask your general contractor in writing whether the works are already insured.
Choose an excess you can easily carry and add ons only for real gaps.
Pick a term with a buffer and ask what an extension costs.
Report the real building costs after completion.
Checklist
Own work included in the building sum
Land and utility connections left out
Term covers a realistic build time
Price of an extension known
Fire covered by fire insurance during construction or an add on
Quotes compared with the same excess
Common mistakes
Estimating the building sum low and getting a reduced payout
Comparing quotes with different excesses on price alone
Reporting cost increases only at the final settlement
Buying a second policy although the general contractor already insures
Questions and answers
Frequently asked
Is the premium paid yearly or once?
For a single build almost always once for the whole term.
Yearly premiums apply to annual contracts held by building firms.
Does my own work count towards the building sum?
Yes.
Include the value of your labour and the materials you buy.
Some insurers add a surcharge for own work.
Do I get money back if the build costs less?
Yes, an overpaid premium is refunded after the final settlement.
If it costs more, you pay the difference.
What does an extension cost if the build takes longer?
Usually a one off surcharge that depends on the policy and the length.
Ask for the price when you sign.
Can I lower the premium without losing cover?
Mostly through a higher excess and by skipping add ons for risks already covered elsewhere,
such as fire through fire insurance during construction.
Is a package with builder's liability cheaper?
Often slightly.
Still compare the cover of each part,
because a package does not always contain the stronger policy.
