# Insurance for condominium owners' associations in Germany: building, liability and the advisory board

> If you own a flat in Germany, you are also a member of the owners' association, the Wohnungseigentümergemeinschaft or WEG. The association owns the roof, the pipes, the stairwell and the grounds together. German law counts insuring the building at rebuild value and the owners' liability as part of proper management. This page explains what the association needs, what it costs and what to look out for as an owner or advisory board member.

Quelle/Source: https://www.nammert.com/en/business-insurance-condominium-owners-association.php  
Updated: 2026-10-14

## Do I need to insure my own flat as well?

The association insures the building as a whole, usually in one policy for the entire property. As an owner you need contents insurance for your furniture and personal liability insurance for yourself. If you let your flat, check whether your own fittings, such as a new kitchen or flooring, are included in the buildings policy.

## At a glance

- **Legal framework:** Under § 19 (2) no. 3 of the German Condominium Act (WEG), proper management includes adequate insurance of the common property at rebuild value and property owners' liability cover for the owners
- **Biggest risk:** Escape of water, storm and fire in the common parts, and underinsurance after years without adjustment
- **Basic cover from:** about €100 to €250 a year of property owners' liability for a building with ten flats, a guide figure from our quoting work
- **Advisory board:** Unpaid members of the Verwaltungsbeirat (advisory board) are liable only for intent and gross negligence under § 29 (3) WEG
- **Often forgotten:** Natural hazards such as heavy rain and sewer backflow are only covered if they are added to the buildings policy

## What goes wrong in this trade

- **Escape of water:** A riser pipe bursts and water runs through three flats into the basement. In blocks of flats this is the most frequent building claim.
- **Underinsurance:** The sum insured was set years ago and never updated. After a fire there is not enough money to rebuild, and owners face a special levy.
- **Duty of care on the grounds:** Icy steps, loose paving or a falling tree: injured visitors claim damages from the association.
- **Heavy rain and backflow:** A thunderstorm pushes water from the sewer into the underground car park. Without natural hazards cover, the buildings policy pays nothing.
- **Refurbishment:** Roof, facade or heating are replaced. During the works there is a risk of damage and disputes with contractors over defects.
- **Decisions and the board:** Volunteer board members check the accounts and the budget. If something goes wrong, their own money can be at stake.

**Risk radar** (Compared with other trades, 1 low to 5 high.): Liability 4, Fire and water 5, Theft 2, Cyber 1, Downtime 2, Health 3

## The insurance you need

- **Buildings insurance** (Essential): Covers roof, walls, pipes and common areas at rebuild value against fire, escape of water, storm and hail, as § 19 WEG describes for proper management. https://www.nammert.com/en/insurance-broker-buildings-insurance.php
- **Business liability** (Essential): As property owners' liability it pays when third parties are injured on the property. With an oil tank, water pollution liability belongs in the policy too. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Natural hazard cover** (Strongly advised): Adds heavy rain, flooding, sewer backflow and landslip, which a standard buildings policy excludes. https://www.nammert.com/en/insurance-broker-natural-hazards.php
- **D&O insurance** (Strongly advised): Protects advisory board members if they are accused of gross negligence or are paid for their work. https://www.nammert.com/en/insurance-broker-directors-and-officers.php
- **Business legal expenses** (Depends on the business): Legal expenses for disputes with contractors, neighbours or a former property manager. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php
- **Contractors all risks** (Depends on the business): Covers unforeseen damage to the building during major works, such as a storm hitting an open roof. https://www.nammert.com/en/insurance-broker-contractors-all-risks.php
- **Solar panel insurance** (Depends on the business): If the association owns solar panels on the roof, this covers the equipment and lost yield. https://www.nammert.com/en/insurance-broker-solar-panel-insurance.php

## What it costs: example prices

The buildings policy is by far the largest item. It depends on floor area, year of construction, building type, region and claims history. Liability cover is cheap and is often priced per flat.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Buildings insurance | Block of ten flats, about 750 square metres, built 1985, fire, water, storm and hail | about €1,800 to €4,000 a year |
| Buildings insurance | Development with 60 flats and an underground car park | about €9,000 to €20,000 a year |
| Natural hazard cover | Natural hazards add on for the ten flat block in a normal risk zone | about €200 to €800 a year |
| Business liability | Property owners' liability, ten flats, €10 million limit | about €100 to €250 a year |
| D&O insurance | Advisory board with three members, €250,000 limit | about €150 to €400 a year |

For comparison: For a building with ten flats, the buildings policy usually costs €15 to €35 per flat a month, less than one tank of fuel.

_Guide figures from our own quoting work, October 2026, excluding German insurance premium tax. Your premium depends on the building, location, excess and claims history. The legal points come from the German Condominium Act._

- [German Condominium Act, § 19 management and use](https://www.gesetze-im-internet.de/woeigg/__19.html)
- [German Condominium Act, § 29 advisory board](https://www.gesetze-im-internet.de/woeigg/__29.html)

## Our suggestions: three packages

- **Essentials** (small association with two to eight flats): Buildings insurance, Business liability, Natural hazard cover. Together: about €1,000 to €3,500 a year
- **Apartment block** (association with ten to 30 flats and an advisory board): Buildings insurance, Business liability, Natural hazard cover, D&O insurance, Business legal expenses. Together: about €2,500 to €9,000 a year
- **Large development** (large property with car park, solar panels and planned refurbishment): Buildings insurance, Business liability, Natural hazard cover, D&O insurance, Business legal expenses, Contractors all risks, Solar panel insurance. Together: individual, usually from about €10,000 a year

## The worst day for an owners' association

Six things that really happen to owners' associations, all on one autumn Sunday. Tap through and see who pays.

- 06:30: The riser pipe on the second floor bursts. Water runs through three flats into the basement. (€38,000, Paid by: Buildings insurance)
- 09:15: A newspaper carrier slips on wet leaves on the outside steps and breaks a wrist. (€9,000, Paid by: Business liability)
- 13:40: Gusts tear off part of the roof, and tiles damage a parked car. (€14,000, Paid by: Buildings insurance)
- 17:20: A thunderstorm forces water from the sewer into the underground car park. (€26,000, Paid by: Natural hazard cover)
- 19:00: An owner accuses the advisory board of approving faulty accounts and claims compensation. (€6,500, Paid by: D&O insurance)
- 21:30: The roofer from the last refurbishment rejects his warranty. The association needs a lawyer. (€4,800, Paid by: Business legal expenses)

**Damage so far:** €98,300

## Practical tips from your broker

- Have the rebuild value assessed and agree a waiver of underinsurance with the insurer.
- Add natural hazards cover even if the building is nowhere near a river. Heavy rain can hit anywhere.
- Decide by resolution who pays the excess on water claims, the association or the affected owner.
- Check whether bathrooms and floors inside the flats are included in the buildings policy and tell the owners.
- Declare oil tanks, solar panels and car parks to the insurer so that the cover fits.
- Have the policies compared every three to five years. Premiums often rise sharply after claims.

## Why NAMMERT for your business

- **We compare for the whole property:** As an insurance broker we obtain quotes from several insurers for building, liability and natural hazards and set them out side by side for the board.
- **We work with your property manager:** The manager prepares the resolution, we supply the figures. The owners' meeting can then decide on a clear basis.
- **We understand claims work:** From boat insurance we know how to report and document a large property claim properly.
- **Family run since 1989:** Arranging insurance since 1989, with the same people on the phone. Free for the association; the insurer pays our commission.

## FAQ

### Does a German owners' association have to insure the building?

Under § 19 (2) no. 3 WEG, adequate insurance of the common property at rebuild value is part of proper management. Without it, a large loss falls on all owners.

### Does the association need its own liability cover?

Yes. The law names property owners' liability explicitly. It pays when third parties are injured on the property and defends unjustified claims.

### What does insurance for a German owners' association cost?

For ten flats, the buildings policy is usually €1,800 to €4,000 a year and liability €100 to €250. Natural hazards cover costs extra.

### Are advisory board members personally liable?

Unpaid board members are liable only for intent and gross negligence under § 29 (3) WEG. D&O cover protects them in these cases and when they are paid.

### Are my belongings covered by the association?

No. Furniture and personal items need your own contents insurance.

### Can I get advice in English?

Yes. We explain the German policies in English, while the contracts themselves are usually in German.

## Request quotes

We obtain quotes and come back with a comparison, free of charge. You can write in English. https://www.nammert.com/en/business-insurance-condominium-owners-association.php#anfrage

---

Your broker: Norman Nammert, trading as NAMMERT. Insurance broker licensed under section 34d(1) of the German Trade Regulation Act. Broker register no. D-C08Q-TOSD4-37. NAMMERT Assekuradeur GmbH is a separate company. It does not arrange your contract.

NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.