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What is builder's risk insurance in Germany and who needs it?

In short

What is builder's risk insurance in Germany? Called Bauleistungsversicherung, it covers the new house itself until handover: storm, heavy rain, vandalism or theft of installed parts. Who needs it? Mainly anyone building in masonry with many separate trades or a lot of own work. For a single family house it usually costs about 200 to 500 euros once.

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What is builder's risk insurance in Germany and who needs it?

What it costs

One off premiums for the whole build, from published examples for new houses in Germany, as of October 2026.

Example	Typical range
Single family house, typical building sum	about 200 to 500 euros once
12 month term, depending on building cost and own work	about 170 to 450 euros
Net building cost 257,000 euros, 30,000 euros own work, three quotes	about 250 to 357 euros
Building sum 500,000 euros, 500 euros excess	from about 400 euros

Ranges from the sources listed.

Some quotes already include builder's liability, check that when comparing.

The claim in the example is a guide value from our quoting practice.

Your premium depends on building sum, duration, construction method and excess; we obtain the exact quote for you.

Worked example

Masonry house, 320,000 euros building sum, 14 month build, interior finished by the owners

In February a storm tears the membrane off the open roof frame, rain gets in and soaks the freshly laid screed.

Premium for the build	about 250 to 450 euros once
Damage: remove screed, dry out, relay	assumed 9,000 euros
Excess	500 euros
Insurer pays	8,500 euros

Without cover you would have had to argue with the roofer and the screed layer about who should have secured the membrane. With cover the insurer pays first and recovers the money from whoever caused it.

What builder's risk insurance covers

It covers what is being built on your plot: foundations, walls, roof, windows, pipes and everything already fixed in place. Until the formal handover, called Abnahme, the risk of sudden damage sits partly with you and partly with the firms. The insurer pays first, without anyone having to settle who is to blame.

Typical claims are a storm that knocks down freshly built walls, heavy rain that floods the excavation, radiators stolen after they were mounted, or strangers smashing new windows. A clumsy tradesman drilling into a pipe and material defects with knock on damage are often included as well.

What it does not pay

It is not a guarantee of good work. Faulty execution as such, such as badly fitted windows or insulation that is too thin, has to be fixed by the firm at its own cost. A builder going bust is not covered either.

Fire, lightning and explosion are missing from many policies, that is what fire insurance during construction is for. Normal weather that anyone has to expect does not count. Loose building materials, tools and machines are usually only covered for an extra premium, if at all.

Damage to the new build	Builder's risk	Fire during construction	Builder's liability
Storm knocks down a wall	yes	no	no
Fire in the shell	usually no	yes	no
Installed windows smashed	yes	no	no
Passer by falls into the pit	no	no	yes
Firm does poor work	no	no	no
Mounted radiators stolen	yes, if fixed in place	no	no

Who needs it

It pays off most for a masonry house with a long build, many separate trades without a general contractor and a lot of your own work. In those cases it is often unclear who is liable, and without cover the site can stand still while people argue.

It also matters more on exposed or remote plots where nobody checks the site at night. Owners, developers and building firms can all take it out.

When you do not need it

If you buy from a developer who owns the plot until handover, the risk is theirs. Many general contractors and prefab house makers also insure the build themselves until handover. Get that in writing, otherwise you pay twice.

A prefab house that is weatherproof within days carries a short risk. For small alterations that do not touch the structure or the roof, it is rarely worth the effort.

What drives the premium

You pay once for the whole build. The price depends on the building sum, duration, construction method, your own work and the excess. A higher excess lowers the premium noticeably.

If the build runs longer than agreed, cover ends. Report delays in good time; an extension costs money but less than a winter in an unprotected shell.

Step by step

Ask your builder whether the works are already insured until handover.
Note the building sum including your own work and the planned duration.
Take it out before the first spade goes in, not once the shell stands.
Choose an excess you can easily carry in a claim.
Extend in good time if the build is delayed.

Checklist

Own work included in the sum insured
Term covers the real building time
Theft of installed parts included
Fire covered by fire insurance during construction or an add on
No double cover with the general contractor
Site locked at night, doors and windows closed

Common mistakes

Treating builder's risk cover as a warranty against poor work
Leaving own work out of the building sum and being underinsured
Assuming loose materials and tools are covered
Letting the term run out while building continues

Questions and answers

Frequently asked

Is builder's risk insurance mandatory in Germany?

No. Neither the law nor the bank requires it. Banks usually ask for fire insurance during construction, not builder's risk cover.

How is it different from builder's liability?

Builder's liability pays for damage your site causes to others. Builder's risk insurance pays for damage to your own new build.

Does it cover fire?

Usually not, or only for an extra premium. Fire, lightning and explosion are covered by fire insurance during construction, often free with the later buildings insurance.

Does it pay if the builder goes bust?

No. A performance bond or paying by construction progress protects you against that, not this insurance.

How long does it run?

Normally until completion or handover, at most about 24 months. Extensions are possible for an extra premium.

Are stored building materials covered?

Usually only what is already fixed in place. Loose materials, tools and machines need their own add on, if the policy offers one.

Sources

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Self-build insurance for homeowners in Germany (Bauherrenversicherung)

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