What insurance do I need when building a house in Germany?
In short
What insurance do I need when building a house in Germany? During construction you need builder's liability, fire cover for the shell, often free inside the later buildings policy, and registration of private helpers with BG BAU, together usually EUR 300 to 900 once. Term life for the loan, often EUR 8 to 20 a month, and buildings insurance with natural hazards after moving in complete it.
Published premiums for insurance when building a house, German market.
Example
Typical range
Builder's liability, building sum EUR 300,000
about EUR 100 to 300 once
Construction all risk, building sum EUR 250,000 to 400,000
about EUR 170 to 500 once
BG BAU, 200 helper hours in 2026
about EUR 243
Fire cover for the shell followed by buildings insurance
usually EUR 0 for 12 to 24 months
Term life EUR 200,000 decreasing, 20 years, age 35, non smoker
about EUR 8 to 20 a month
Figures from published tariff examples, October 2026.
Your premium depends on building sum, location and scope; we obtain the exact quote.
Worked example
Couple builds a family house, building sum EUR 350,000, loan EUR 300,000, 200 helper hours
This is the cover when building a house, from the first spade to the first year in the house.
Builder's liability
about EUR 150 to 300 once
Construction all risk
about EUR 250 to 500 once
BG BAU for helpers
about EUR 243
Fire cover for the shell
EUR 0
Two term life policies of EUR 150,000 each
about EUR 150 to 400 a year
Buildings with natural hazards from moving in
about EUR 450 to 800 a year
About EUR 640 to 1,040 once for the construction phase, then about EUR 600 to 1,200 a year for house and loan.
Building a house in three phases
When building a house in Germany the risks change as the work progresses. Before the first spade it is about liability and the loan, during construction about the half finished house and helpers, after moving in about the finished building. This page puts the steps in order; details on builder's liability, construction all risk and fire cover are on the linked pages.
The table shows what is due when.
Phase
Insurance
Cost
Before construction
builder's liability, term life for the loan
about EUR 100 to 300 once, EUR 8 to 20 a month
During construction
fire cover for the shell, construction all risk, BG BAU for helpers
EUR 0, about EUR 170 to 500, from EUR 100
After moving in
buildings with natural hazards, contents
about EUR 400 to 600 a year plus natural hazards
Before construction: liability and the loan
As the client you are liable for the building site, for example if a passer by trips over unsecured material. Under the German model terms personal liability (Privathaftpflicht) covers this only up to a building sum stated in the policy, usually too low for a new house. Builder's liability for a EUR 300,000 build costs about EUR 100 to 300 once.
The mortgage often runs 20 years or more. If one partner dies, the other must carry it alone. Decreasing term life cover of EUR 200,000 at 35 often costs EUR 8 to 20 a month and is usually cheaper than the bank's payment protection insurance.
During construction
Fire cover for the shell protects against fire, lightning and explosion. Banks usually require it. Many insurers give it free for 12 to 24 months if your buildings policy then starts with them.
Construction all risk insurance pays for damage to the building from storms, vandalism, theft of installed parts or design faults. It is not compulsory but avoids disputes with contractors. Friends or relatives who help must be registered with BG BAU, the construction industry's accident insurer; in 2026 this costs about EUR 1.21 per helper hour, at least EUR 100.
After moving in
When you move in, fire cover for the shell becomes buildings insurance (Wohngebäude). Make sure burst pipes, storm and hail and natural hazards cover for heavy rain and backflow are included. A typical family house costs about EUR 400 to 600 a year, natural hazards in a safe area EUR 50 to 200 more.
Update your contents insurance for the new floor space and tell your liability insurer about solar panels or an oil tank.
What you do not need when building a house
Construction all risk is dispensable if a general contractor builds turnkey and the contract leaves the risk with them until handover. You usually do not have to take the bank's payment protection insurance.
Norman Nammert works as an insurance broker (Versicherungsmakler) and puts together builder's liability, shell cover, loan protection and buildings insurance for building a house. The insurer pays the commission, so this is free for you.
Step by step
Take out builder's liability before construction starts.
Compare term life with the bank's payment protection insurance.
Link fire cover for the shell to your later buildings policy.
Decide on construction all risk.
Register private helpers with BG BAU.
On moving in, set up buildings cover with natural hazards and update contents.
Checklist
Builder's liability before the first spade
Fire cover with proof for the bank
Helpers registered with BG BAU
Loan protected by term life
Buildings cover with natural hazards from moving in
Solar panels and oil tank reported to your liability insurer
Common mistakes
Relying on personal liability for a new build
Not registering helpers with BG BAU
Buying fire cover for the shell separately and paying for it
Dropping natural hazards cover when switching to buildings insurance
Questions and answers
Frequently asked
Which insurance is compulsory when building a house?
By law only registering private helpers with BG BAU.
Banks usually require fire cover for the shell.
Is my personal liability enough as a builder?
Only up to the building sum in your policy.
For a new house you usually need builder's liability.
What does fire cover for the shell cost?
Often nothing if your buildings policy follows with the same insurer.
Do I need construction all risk?
It is not compulsory, but covers damage to the building from storms, theft and vandalism.
