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Is buildings insurance mandatory in Germany?

In short

There is no legal obligation in Germany. If you buy with a mortgage, though, the bank almost always requires proof of buildings insurance (Wohngebäudeversicherung), and in an owners' association insuring the common property at replacement value is part of proper management. Without it you pay for every fire and burst pipe yourself.

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Is buildings insurance mandatory in Germany?

What it costs

What the cover banks and associations expect costs, as of 2026.

Example	Typical range
Detached house, basic cover	about EUR 90 to 250 a year
Detached house with good cover	about EUR 400 to 500 a year
Natural hazards cover in a safe location	about EUR 50 to 200 a year

Guide values as of September 2026 from publicly quoted examples. Your premium depends on the property, location and cover; we obtain the exact quote for you.

Worked example

Buying a house with a mortgage

How proof for the bank works.

Seller's policy passes to you	by law, with the land register entry
Your right to cancel as buyer	one month after the entry
Proof for the bank	insurance confirmation with sum and perils

You either keep the old policy or take out a new one before the cancellation period ends.

Why it is not mandatory, yet hardly anyone goes without

Some German states used to have public compulsory insurance, most recently Baden-Württemberg. When those monopolies ended, the obligation disappeared.

Even so, it is the most important property insurance for owners, because a fire can cost everything you own.

Who requires it

Banks secure their loan with a land charge on the house (Grundschuld). If it burns down, the security is gone, so they require proof.

The Condominium Act (Wohnungseigentumsgesetz) lists adequate insurance of the common property at replacement value as part of proper management. Every owner can demand it.

Situation	Do I have to insure?
House without a loan	legally no, strongly recommended
House with a mortgage	yes, under the loan agreement
Owner-occupied flat	the owners' association insures the whole building
Tenant	no, that is the landlord's job

What is different when you buy in Germany

In Germany the seller's buildings insurance does not end at the sale. It passes to you by law once you are entered in the land register (Grundbuch), and from then you have one month to cancel it. Many buyers from abroad expect to arrange everything new, as in the UK or US, and miss that deadline.

Ask the seller or the notary for the existing policy early, compare it with a new quote and decide before the month is over. Policy documents and the bank's requirements will be in German; the bank usually wants a confirmation showing the sum insured and the covered perils.

What happens if you do not insure

You pay for a fire, storm damage or a major burst pipe entirely yourself. Rebuilding a detached house quickly costs several hundred thousand euros.

If you let the property, you also remain obliged to your tenants to repair it, with or without insurance.

Step by step

Check the loan agreement for the perils the bank requires.
Request the seller's existing policy.
Compare cover and price with a new quote.
Send the confirmation to the bank.

Checklist

Fire, mains water, storm and hail covered
Sum based on the 1914 value (Wert 1914) with an underinsurance waiver
Natural hazards cover checked
Confirmation for the bank in hand

Common mistakes

Assuming the seller's policy has already ended
Missing the deadline to cancel the policy you took over
Taking out your own buildings insurance as a flat owner in an association

Questions and answers

Frequently asked

Do I need buildings insurance as a tenant?

No. The landlord insures the building, often passing the cost on to you through the service charges (Nebenkosten).

Is natural hazards insurance mandatory?

No. An obligation has been debated for years but has not been passed so far.

What if the bank gets no proof?

The loan agreement usually requires it. If it is missing, depending on the contract the bank may demand it or even terminate the loan.

Does the insurance pass to me when I buy?

Yes, it passes to you with the land register entry. You can cancel it within one month after that.

What happens to the policy if I sell and leave Germany?

It passes to the buyer with the land register entry, just as it came to you. You do not need to cancel it separately.

Sources

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Request a quote: Buildings insurance

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3Details

Buildings insurance in Germany (Wohngebäudeversicherung)

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