Is a prefab house more expensive to insure in Germany?
In short
A prefab house (Fertighaus) is more expensive to insure in Germany only if it is not built of solid materials. Solid prefab houses with a hard roof pay the normal premium. Timber or steel frames with fire-resistant cladding add a surcharge, in one published tariff 0.15 per mille on a base rate of 0.75, about a fifth more. Without such cladding the house costs much more or is hard to insure.
Rates from published tariff and training examples, per 1,000 marks of 1914 value in per mille.
Example
Typical range
Base rate for fire, mains water and storm in a tariff example
0.75 per mille
Surcharge for prefab group 2 in the tariff example
0.15 per mille, about 20 percent more
Surcharge for timber construction class III, training example
0.8 per mille
1914 value of 20,000 marks, factor 27.63, FHG 1 against FHG 2
about EUR 414 against EUR 497 a year before insurance tax
The rates are sample values from published tariff and training examples; real tariffs differ,
and many now rate by living space.
The calculation with the 2026 adjustment factor is our own, not a quote.
Your premium depends on location, construction and cover; as a broker we obtain the exact quote.
Worked example
Timber-frame prefab house, 1914 value of 20,000 marks
How the prefab group affects the premium, using the rates from the tariff example and the 2026 adjustment factor.
Group 1: 20,000 × 0.75 per mille × 27.63
EUR 414.45
Group 2: 20,000 × 0.90 per mille × 27.63
EUR 497.34
Extra premium for group 2
EUR 82.89 a year
In this example the fire-resistant cladding costs about EUR 83 a year extra, before insurance tax. Without it the surcharge would be higher or the house insurable only on request.
Prefab groups instead of construction classes
German insurers sort solid houses into construction classes (Bauartklassen) and prefab houses into their own prefab groups (Fertighausgruppen). Both ask the same question: how easily does the house burn, and how hard is it to rebuild after a fire?
The lower the group, the lower the premium. Many tariffs set their base rates for group 1 and add a surcharge for groups 2 and 3. Some insurers skip the groups and charge a flat surcharge for any house that is not solid.
Group
Construction
Effect on the premium
FHG 1
solid, non-combustible parts, hard roof
base premium, no surcharge
FHG 2
timber, steel or lightweight frame clad with render, brick, plasterboard or metal, hard roof
surcharge, 0.15 per mille in the example
FHG 3
as FHG 2 but without fire-resistant cladding, often plastic cladding
higher surcharge or refusal
Soft roof
thatch, straw, wood
separate, more expensive class
What decides the classification
It does not matter whether the house was made in a factory, only what it is made of. A prefab house of concrete elements with a tiled roof is in group 1 and costs as much to insure as a brick-built house.
For the common timber-frame houses, the outer skin decides. If the timber is clad with render, brick or plasterboard in a fire-resistant way, group 2 usually applies. If the timber is exposed or behind plastic, the house ends up in group 3. With mixed construction, insurers classify by the weaker part.
What it means in euros
In one published tariff example, the base rate is 0.20 per mille for fire, 0.30 for mains water and 0.25 for storm and hail, together 0.75 per mille of the 1914 value. A group 2 prefab house adds 0.15 per mille.
For a house with a 1914 value of 20,000 marks and the 2026 adjustment factor of 27.63, that is about EUR 83 more a year before insurance tax. For timber buildings outside the prefab groups, training material even quotes a 0.8 per mille surcharge, which almost doubles the base premium.
If the house is classified too high or too low
Many owners do not know their group and tick the worse one to be safe. That costs money every year. The manufacturer's building specification (Baubeschreibung) shows which cladding was used and whether walls and ceilings are fire-resistant.
Stating a better construction than you have is risky. Under section 19 of the Insurance Contract Act (VVG), the insurer may, depending on fault, withdraw, terminate or adjust the contract retroactively. If in doubt, attach the specification and have the classification confirmed in writing.
When the difference hardly matters
A modern prefab house with rendered walls and a tiled roof is often in group 2 or even group 1. The surcharge then mainly affects the fire part, while mains water, storm and natural hazards are rated as for a solid house.
Older timber prefab houses without fire-resistant cladding are harder. Some do not even fit group 3 and cannot be insured on a standard tariff. Then only an individual quote helps, which a broker obtains from several insurers.
Step by step
Find the manufacturer's building specification: frame, outer cladding, roof.
Work out the prefab group from it instead of guessing.
State the correct group in the application and attach the specification.
Compare quotes from several insurers, as surcharges and groups differ.
Have the classification checked after a new facade or roof covering.
Checklist
Prefab group backed by the building specification
Hard roof of tiles, concrete, slate or metal
Fire-resistant outer cladding documented
Classification confirmed in writing by the insurer
1914 value or living space stated correctly
Common mistakes
Ticking group 3 out of uncertainty although the house is clad
Declaring a timber house as solid and being cut back after a claim
Retrofitting plastic cladding and worsening the classification
Giving up after one refusal instead of asking for an individual quote
Questions and answers
Frequently asked
How do I find out the prefab group of my house?
From the building specification or building file: it lists the frame, wall build-up,
outer cladding and roof.
If you do not have it, ask the manufacturer or the local building authority.
Is a timber house always more expensive to insure?
Usually yes, because timber burns more easily.
How much more depends on the cladding and the insurer.
With fire-resistant cladding the surcharge is much smaller.
Does the insurer pay less after a claim on a prefab house?
No, if the classification is correct.
The house is then insured at replacement value just like a solid house.
Only a wrong statement in the application is dangerous.
Are prefab houses ever refused?
Rarely, but it happens: houses without fire-resistant cladding sometimes do not meet even group 3.
Then only individual quotes on request are possible.
Do all insurers use prefab groups?
No.
Some only ask whether the house is solid and otherwise add a flat surcharge.
That is why the same prefab house can cost very different amounts with two insurers.
