# Building a home in Germany: the insurance you need before the first dig > If you commission a house in Germany yourself, you become the Bauherr: the person legally responsible for the building site. There is no single self-build policy, but four separate covers with different jobs. One of them is an official registration that many newcomers never hear about until someone gets hurt. Quelle/Source: https://www.nammert.com/en/insurance-broker-self-build-insurance.php Updated: 2026-09-18 ## What insurance do I need to build a house in Germany? You need builder's liability insurance (Bauherrenhaftpflicht) and fire cover for the shell (Feuerrohbau), which is usually included free in the buildings insurance you will need later anyway. Construction all risks insurance (Bauleistungsversicherung) is strongly recommended. If friends or relatives help on site, you must register the project with the construction trade accident insurer BG BAU within one week, so your helpers have statutory accident cover. ## At a glance - **Compulsory?:** no insurance duty, but helpers must be registered with BG BAU - **Builder's liability:** one-off premium based on building cost - **Shell fire cover:** often free within the future buildings policy - **Helper registration:** within one week of starting work - **Lender requirement:** banks usually require fire cover before paying out ## Buying from a developer or building yourself: a key difference Many new homes in Germany are sold by a developer (Bauträger), who remains the legal Bauherr until handover. In that case the developer insures the site and you only need buildings insurance from the day you take over. If you buy a plot and hire an architect, a general contractor or a prefab house company, you are the Bauherr, with the duties that come with it. The most important duty is keeping the site safe for others (Verkehrssicherungspflicht, based on Section 823 of the Civil Code). You can hand the practical work to the contractors, but you remain responsible for checking that they do it. If a passer-by falls into an unfenced trench, the claim often reaches you first. ## The helper rule that surprises most newcomers In Germany, private helpers on a building site are covered by statutory accident insurance through BG BAU, the employers' liability insurance association for construction, even if they work for free. As the Bauherr you must register the project within one week and later report the hours worked; the contribution is based on those hours. Failing to register can lead to a fine and a back payment after an accident. You yourself are not covered by that registration. Statutory benefits also follow strict rules, with pensions only above a certain level of permanent impairment. A private helper accident policy (Bauhelfer-Unfallversicherung) can add a lump sum for disability and can include you as the owner. ## Fire, storm and theft: which policy pays Shell fire insurance covers fire, lightning and explosion while the house is being built. Many insurers include it free of charge if you take out the future buildings insurance with them. Your lender will normally ask for proof before releasing the loan. Construction all risks insurance covers what fire cover does not: storm, heavy rain, vandalism, theft of installed parts and unforeseen damage from design or material faults. Without it, the contractors and the owner argue over who pays for a collapsed gable, and work stops while they do. ## If the contractor goes bust Under a German consumer building contract, the contractor must provide security of five percent of the agreed price with the first instalment (Section 650m of the Civil Code), usually as a bank guarantee. A completion guarantee goes further and covers extra costs if the firm becomes insolvent before finishing. It is provided by the contractor, so ask for it before you sign. ## What is covered - Your liability as owner for injury and property damage to third parties around the site - Breaches of the duty to secure the site, such as open trenches or falling material - Fire, lightning and explosion to the shell under shell fire cover - Storm, vandalism and theft of installed parts under construction all risks - Unforeseen damage to the works from design or material faults - Accidents of registered private helpers through BG BAU - A disability lump sum for helpers and owners under a private helper accident policy ## What is not covered - Defects that a contractor must fix under the building contract - Theft of loose materials not yet installed, depending on the policy - Damage from foreseeable weather to unprotected materials - Extra costs caused by the insolvency of the contractor - Accidents of the owner through the BG BAU registration - Damage to the neighbouring house from lowering groundwater, unless included ## Who needs it - Anyone who buys a plot and commissions a new house - Owners who plan to do part of the work themselves with friends - Anyone building with separate trades rather than one general contractor - Buyers of prefab houses who organise the basement or foundation slab themselves ## Who can do without - Buyers of a new home from a developer, who insures the site until handover - Small renovation projects clearly covered by your personal liability policy ## What it costs Builder's liability and construction all risks are usually paid once for the whole building period. Shell fire cover is often free when combined with the future buildings insurance. BG BAU sets its own contribution based on the helper hours you report. **What drives the premium:** - Building cost excluding the plot - How much work you and your helpers do yourselves - Construction method and planned building time - Deductible for construction all risks - Site conditions such as slopes, groundwater or neighbouring buildings _We do not publish guide prices here because building costs and methods vary too widely. Your premium is fixed only in the quote._ ## The policy levels on the market - **Minimum:** Builder's liability and shell fire cover. Meets the legal and lender basics but leaves storm, vandalism and theft at the site open. - **Recommended:** Adds construction all risks insurance. The sensible level for any new build involving several trades. - **Self-build:** Adds BG BAU registration and a private helper accident policy. For owners who work on site with family and friends. ## How to recognise a good policy | Criterion | Minimum standard | Strong policy | Why it matters | | --- | --- | --- | --- | | Liability cover | 5 million € combined | 10 million € or more | A serious injury on a building site can exceed small limits quickly. | | Own work | small share of building cost | high share explicitly covered | Owners doing a lot themselves may otherwise fall outside the cover. | | Damage to neighbours | excluded | vibration and groundwater damage included | Cracks in the neighbour's house are among the most expensive site claims. | | Shell fire free period | six months | until completion, at least 24 months | Building times slip and lenders want cover without gaps. | | Theft on site | installed parts only | delivered but not yet installed parts too | Windows, heating units and cables often disappear before fitting. | | Helper accident | disability cover for helpers | owner and partner included | The owner is not covered by the BG BAU registration. | ## Insurers on the German market Many German property insurers offer builder's liability and construction all risks, sometimes as a package. This list is a market overview and says nothing about which insurers we work with. - **VHV**: broker-focused insurer with a focus on the construction sector - **Allianz**: builder's liability and construction cover, agents and brokers - **AXA**: German arm of the French AXA group - **R+V**: insurer of the cooperative banks, often offered with the mortgage - **Haftpflichtkasse**: mutual insurer specialised in liability, sells through brokers - **Gothaer**: mutual group, agents and brokers - **Alte Leipziger**: property insurer of the Alte Leipziger-Hallesche group, sells through brokers - **Württembergische**: part of the W&W group, which also owns the building society Wüstenrot 163 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance. (Allgemeine Haftpflicht, Hagel-, Frost- und sonstige Sachschäden). Source: BaFin company database, retrieved 2026-09-18. Insurers from other EU countries selling through a branch or without a German office are not included. ## Typical claims and who pays - **Child climbs the fence and falls** (five figures, more in serious cases): German courts expect building sites to be secured against curious children. Builder's liability pays if the fencing was not enough. - **Vandals spray the new facade** (around 2,000 to 8,000 €): Shell fire cover does not include vandalism. Construction all risks insurance (Bauleistungsversicherung) does. - **Heavy rain floods the excavation** (around 3,000 to 15,000 €): Construction all risks pays for unusual weather damage to the works. Normal rain that should have been planned for is not covered. - **Electrical fire in the shell** (up to the value of the whole shell): Fire damage to the shell is paid by shell fire insurance (Feuerrohbauversicherung), which is part of the minimum package. - **Tools stolen from the site overnight** (a few hundred to several thousand €): Tools and machinery are not part of the building works. They need their own cover, usually through the contractor. - **Contractor goes bust mid-build** (often five or six figures to finish): Insolvency is not an insured event. Protection comes from a completion guarantee (Fertigstellungsbürgschaft) and staged payments. ## Myth or truth - „If the contractor causes an accident on your site, you as the owner can still be liable." ✔ True: in Germany the owner has a duty to keep the site safe, even when professionals do the work. Injured people often claim against both. Builder's liability insurance defends you and pays valid claims. - „Friends who help on my building site are covered by my personal liability policy." ✘ False: personal liability does not cover injuries to your helpers, and building work beyond small jobs is often excluded. Helpers must be registered with the BG BAU accident insurer. - „Construction all risks insurance pays for poor workmanship." ✘ False: it pays for sudden, unforeseen damage to the works, such as storm, vandalism or theft of installed parts. Defects are the contractor's responsibility under the warranty. - „Many German lenders want proof of fire cover before releasing construction loan money." ✔ True: the house is the bank's security, so the bank wants it insured from the start. Shell fire cover is usually the document they ask for. Some insurers offer it free for the build period if the home policy follows. - „Construction all risks cover ends when you move in, not when the last trade leaves." ✔ True: cover typically ends at formal acceptance of the works (Abnahme) or when you move in, whichever comes first. From then on you need regular buildings insurance. Plan the switch so there is no gap. ## Common mistakes - Starting groundwork before any policy is in place - Letting friends help without registering the project with BG BAU - Relying on personal liability insurance for a whole new house - Understating your own work to lower the premium - Forgetting shell fire cover and delaying the loan payout ## FAQ ### Is builder's liability insurance compulsory in Germany? Not by law. But the owner is liable for site safety without any upper limit, so almost everyone takes it out. Some lenders ask for proof. ### Do I have to register friends who help me build? Yes. Unpaid helpers are covered by statutory accident insurance through BG BAU, and you must register the project within one week of starting. BG BAU decides in individual cases whether close relatives are exempt. ### Does my personal liability insurance cover building a house? Only up to the building cost stated in your policy, which usually covers sheds and small renovations, not a new house. Check the conditions of your contract. ### What is the difference between construction all risks and shell fire cover? Shell fire cover pays for fire, lightning and explosion only. Construction all risks pays for storm, vandalism, theft of installed parts and unforeseen damage to the works, but usually not for fire. ### I am buying a new-build flat from a developer. Do I need this? Usually not. The developer is the legal owner of the project until handover and insures the site. In a flat, the owners' association arranges the buildings insurance. ### When should cover start? Before the first step on the plot, such as excavation or tree felling. Anything that happens before the policy starts is not covered. ### Are the documents available in English? Sometimes as information, but the binding conditions are almost always in German. We can walk you through the key clauses in English. ### What does BG BAU registration cost? Registering is free. BG BAU calculates the contribution afterwards from the helper hours you report. ### Why use a broker for this? Because four covers must fit together, and limits for own work and damage to neighbours vary a lot between insurers. A broker compares on your behalf and is paid by the insurer. ## Legal basis and sources - [Civil Code (BGB, German)](https://www.gesetze-im-internet.de/bgb/) - [Insurance Contract Act (VVG, German)](https://www.gesetze-im-internet.de/vvg_2008/) - [BaFin company database (licensed insurers)](https://portal.mvp.bafin.de/database/InstInfo/) ## Request quotes We obtain quotes and come back with a comparison. Free of charge and without obligation: the insurer pays our commission. You can write in English. https://www.nammert.com/en/insurance-broker-self-build-insurance.php#anfrage --- NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker. NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.