What is fire insurance for a house under construction in Germany?

Premiums for fire insurance during construction for a single family house, from published figures, as of October 2026.

A shell is especially at risk of fire: timber for the roof frame, insulation, welding, temporary power and heaters for drying. If the roof frame burns down shortly before the topping out, a large part of the building sum is gone, and the loan keeps running.

That is why almost every German bank wants proof of fire insurance before paying out. It has itself entered as beneficiary through a Sicherungsschein. In a claim, the insurer then only pays you with the bank's consent.

Covered are fire, lightning, explosion, implosion and aircraft impact. Costs for firefighting, clearing up and demolishing destroyed parts are usually included as well.

Other risks are missing. If a storm rips off the uncovered roof or heavy rain floods the basement, fire insurance pays nothing. That is what builder's risk insurance is for.

Many providers give fire cover for the build free of charge if you take out buildings insurance for the finished house with them. The free period is usually 12 to 24 months, with some policies only 6 months.

The price is the commitment: you bind yourself to the buildings insurance, usually for at least one year and often longer. So do not compare the free shell cover, compare the buildings insurance that follows. A weak or expensive buildings policy costs more over the years than fire cover during construction ever would.

If you buy from a developer who owns the plot until handover, they insure the build. You only need buildings insurance from handover.

If you build without a loan, nobody asks for proof. It still makes sense, because a fire in the shell would otherwise be entirely at your cost. For a small extension, check whether your existing buildings insurance already covers building work on the house.

A masonry house often takes 12 to 18 months from first spade to moving in, longer with a lot of own work. If the free period is too short, premiums start early or, in the worst case, a gap opens. Choose a period with a buffer and report moving in on time.