What happens to the insurance on an inherited house in Germany?

In short

What happens to the insurance on an inherited house in Germany? The buildings insurance passes to the heirs with the inheritance under section 1922 of the German Civil Code (BGB) and simply carries on, as does the contents policy at first. Report the death and any vacancy to the insurer straight away, or a claim may be cut. Good cover for a detached house costs about EUR 400 to 500 a year.

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What it costs

What the policies for an inherited house cost in Germany, guide values from published examples.

Example	Typical range
Detached house, 100 square metres, basic cover	about EUR 90 to 150 a year
Typical detached house with good cover	about EUR 400 to 500 a year
Older house or high risk location	about EUR 800 to 1,000 a year and more
Property owner's liability (Haus- und Grundbesitzerhaftpflicht)	about EUR 30 to 70 a year
Contents insurance for 75 to 80 square metres	about EUR 25 to 120 a year

Guide values as of October 2026 from published examples.

The figures in the worked example are guide values from our quoting practice.

Your premium depends on age, location, vacancy and cover;

Norman Nammert obtains quotes as an insurance broker.

Worked example

Two siblings inherit a detached house that stands empty for six months

This is what it costs if the house stays empty until the sale and the heirs report everything correctly.

Buildings insurance, taken over	about EUR 450 a year, around EUR 225 for six months
Property owner's liability for the empty house	about EUR 30 to 70 a year
Inspections, water shut off, heating on frost protection	duties under A 20.1 VGB 2022 met
Vacancy reported to the insurer	increase in risk notified, section 23 VVG
Sale with entry in the land register	policy passes to the buyer

Around EUR 240 to 260 in premiums until the sale, shared between both heirs. Guide values from our quoting practice.

What happens automatically when you inherit

On death, the whole estate passes to the heirs under section 1922 BGB. That includes the policies on the inherited house. You do not have to sign anything for the buildings insurance to carry on.

The rules for buying a house in sections 95 to 97 of the Insurance Contract Act (VVG) do not apply to an inheritance, because nobody sells the house. So there is no special right to cancel just because you inherited. You can cancel at the end of the term, after a claim, or the buyer gets his own right if you later sell the inherited house.

For the contents insurance (Hausratversicherung), read the deceased's policy terms. Some contain their own rule for a death, such as cover ending after a transition period if nobody moves in. Ask the insurer how long the contents in the inherited house remain covered.

Policy	What happens when you inherit the house
Buildings insurance	passes to the heirs and continues
Natural hazards cover (Elementarschutz)	continues if it was part of the policy
Contents insurance of the deceased	passes over, check the terms for a rule on death
Personal liability, single policy	ends with the death
Your own personal liability	usually covers only a house you live in yourself

An empty house puts the cover at risk

An inherited house often stands empty for months while the heirs decide what to do. That matters: under the model terms VGB 2022 it counts as an increase in risk if the building or most of it is no longer used. Section 23 VVG requires you to report such an increase without delay.

There are also duties for the empty house. Under A 20.1.2 VGB 2022, unused buildings must be checked often enough, and water pipes shut off and drained. In the cold season you must either heat the house or drain the system as well.

A burst hose in an unheated house nobody checked is the classic dispute. If you breach these duties, the insurer may pay less or nothing. A written inspection plan with dates helps you prove later what you did.

Several heirs: who takes care of it

If several siblings inherit the house, they manage the estate jointly under section 2038 BGB. But each co-heir may take the measures needed to preserve it alone. Informing the insurer and shutting off the water does not have to wait for everyone's consent.

Unpaid premiums of the deceased are debts of the estate, and the heirs are liable for them under section 1967 BGB. If the premium is still collected by direct debit from the deceased's account, it may bounce once the account is frozen. Agree early who pays and who is the contact for the insurer.

Liability for the inherited house

As owner you are liable for risks coming from the inherited house, such as loose roof tiles or an icy pavement nobody gritted. Personal liability insurance (Privathaftpflicht) normally covers only a house you live in yourself.

If the inherited house stands empty or is let, a property owner's liability policy (Haus- und Grundbesitzerhaftpflicht) is the safe choice. It often costs only EUR 30 to 70 a year. An oil tank in the cellar needs its own water pollution liability cover (Gewässerschadenhaftpflicht).

Selling, letting or moving in

If the heirs sell, the buildings insurance passes to the buyer with the entry in the land register (Grundbuch), and sections 95 to 97 VVG apply. Until then you remain responsible, including for premiums and vacancy duties.

If you let the house, its use changes. Tell the insurer, because a change in circumstances asked about in the application can be an increase in risk. If you move in yourself, transfer your own contents insurance to the new address and cancel the deceased's old contents policy.

When you do not need a new policy

If the inherited policy is adequate, with an up to date sum insured and natural hazards cover, and someone moves in soon, a notice to the insurer is often enough. Switching pays off mainly with old policies without natural hazards cover or with a sum insured that is too low.

To be honest: a house with many past claims does not always get a new policy. Only cancel the old one once the new cover is confirmed in writing.

Step by step

Collect the deceased's policies: buildings, contents, liability, natural hazards.
Notify each insurer of the death in writing and name one contact person for the heirs.
Move premium payments from the deceased's account to an account of the heirs.
Report the vacancy at once and ask the insurer which conditions apply.
Shut off and drain the water or keep the house heated, set fixed inspection dates and note them.
Sort out liability for the house and take out property owner's liability cover if needed.
Adjust the policies again when you sell, let or move in.

Checklist

All policies on the inherited house found and listed
Death reported to the insurers in writing
Premiums paid from an account of the heirs
Vacancy reported, inspection plan in place
Water pipes shut off or house heated in winter
Liability for a house you do not live in sorted out
Sum insured and natural hazards cover checked

Common mistakes

Letting the policy run without telling the insurer
Keeping quiet about the vacancy because it is only meant to be temporary
Neither heating nor draining the empty house in winter
Leaving the old direct debit on the frozen account
Cancelling the policy before new cover is confirmed

Questions and answers

Frequently asked

Do I need new buildings insurance as an heir?

No, the existing policy passes to you.

Do check the sum insured and natural hazards cover and report the inheritance.

Can I cancel the buildings insurance straight away because I inherited?

There is no special cancellation right for an inheritance.

You cancel at the end of the term or after a claim, and on a sale the buyer has his own right.

When does an inherited house count as empty?

The model terms refer to the building or most of it no longer being used.

Report the vacancy early rather than late.

Who pays the premium if there are several heirs?

The heirs together.

Unpaid premiums of the deceased are debts of the estate under section 1967 BGB.

Does my personal liability insurance cover the inherited house?

Usually only if you live in it yourself.

For an empty or let house you normally need property owner's liability cover.

What happens to the deceased's contents insurance?

It passes to the heirs at first.

Some terms have their own rule for a death; once the household is cleared, cancel the policy.

Sources

NAMMERT insurance broker

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