# Buildings insurance in Germany: what homeowners and buyers need to know > Wohngebäudeversicherung covers the structure of your house against fire, burst pipes, storm and hail, normally at full rebuild cost. It is not required by law, but every mortgage lender will insist on it. Flooding and heavy rain are excluded unless you add natural hazards cover. Quelle/Source: https://www.nammert.com/en/insurance-broker-buildings-insurance.php Updated: 2026-09-18 ## Is buildings insurance mandatory in Germany? No, there is no legal obligation. In practice you need it anyway: a bank will not grant a mortgage without it, and when you buy a house the seller's existing policy transfers to you automatically. Owners of a flat in a multi-unit building are usually covered by the owners' association policy. A compulsory element for natural hazards is being discussed politically, but as of September 2026 no law has been passed. ## At a glance - **Compulsory?:** No, but required by mortgage lenders - **Basis of payment:** rebuild cost at today's prices (gleitender Neuwert) - **Index factor 2026:** 27.8, applied to the 1914 value - **Flood cover:** only with the natural hazards add-on - **Buying a house:** seller's policy passes to you, you may cancel within a month ## The strange 1914 value, explained German insurers often express a house's rebuild cost in marks at 1914 prices. That base figure never changes. Each year it is multiplied by an index that tracks building costs and wages, 27.8 for 2026, so the cover and the premium rise with construction prices without anyone recalculating. The alternative is a floor area model: you state living space, construction and fittings, and the insurer waives any underinsurance deduction. Whichever model you use, report extensions such as a converted loft, otherwise the waiver can be lost. ## Buying a house: you inherit the policy Under § 95 of the Insurance Contract Act (VVG), the seller's buildings policy passes to the buyer when ownership changes. You can cancel it within one month of the land register entry, and the insurer can also cancel within a month of learning about the sale (§ 96 VVG). That is useful, because the house is never uninsured, but it also means you may take over an outdated policy without flood cover and with a low sum insured. Ask the seller for the policy before completion and have it checked. ## Water, not fire, is the everyday risk Most claims come from escaping water: burst pipes, frost, leaking connections. Good policies also cover supply and drain pipes outside the building on your plot, where tree roots are a common cause. Houses with a history of water claims often only get cover with an excess, or not at all. Heavy rain is different. Water that comes in from outside or backs up from the sewer is not a burst pipe claim. According to the German insurers' association GDV, around 59 percent of homes had natural hazards cover in 2025, so four in ten would not be paid for a flood. ## Renting out, owning a flat, and outbuildings If you let the property, a buildings policy can also cover lost rent while it is being repaired. As a landlord you may pass the premium on to tenants through the service charges. If you own a flat, the building is normally insured through the owners' association and paid via the monthly house money. Garages, carports, garden sheds, solar panels and jetties need to be declared. A boathouse is an outbuilding and belongs on the buildings policy; the boat inside does not, and that is where we act as an underwriting agency rather than a broker. ## What is covered - Fire, lightning and explosion - Escaping water, burst and frozen pipes - Storm from wind force 8 and hail - Clearing, demolition and disposal costs - Lost rent on let properties, for a limited time - Power surge from lightning, in most policies - Declared outbuildings and roof solar panels - Flooding, heavy rain and backflow, only with the natural hazards add-on ## What is not covered - Flooding and heavy rain without the natural hazards add-on - Storm surge on the coast, usually excluded even with the add-on - Wear and tear, construction defects and poor maintenance - Your furniture and belongings, which need contents insurance - Damage during construction, which needs builders' risk cover - Undeclared extensions and outbuildings ## Who needs it - Anyone who owns a house in Germany - Every buyer with a mortgage, since the lender requires it - Landlords who want lost rent covered as well - New owners who inherited the previous owner's policy ## Who can do without - Owners of a flat whose building is insured by the owners' association - Tenants, as the landlord insures the building ## What it costs Buildings insurance in Germany has become noticeably more expensive, driven by construction costs and weather claims. The annual index passes rising building prices straight into your premium. We do not give sample prices, because location, age and past claims matter more than the insurer. **What drives the premium:** - 1914 value or living space and fittings - Year of construction and age of pipes, roof and wiring - Construction type and roof covering - Postcode, storm zone and flood hazard class - Natural hazards add-on and excess - Water claims in recent years _No sample prices, because they vary widely from house to house. Your premium is only fixed in the quote._ ## The policy levels on the market - **Basic:** Fire, water, storm and hail at rebuild cost, with tight limits on extra costs and only partial gross negligence cover. - **Standard:** Gross negligence waived, drain pipes on the plot covered, higher limits for clearing costs and power surge. - **Premium:** Broader all-risks elements, a guarantee to match better market standards, solar panels and outbuildings included. ## How to recognise a good policy | Criterion | Minimum standard | Strong policy | Why it matters | | --- | --- | --- | --- | | Rebuild cost basis | gleitender Neuwert agreed | with underinsurance waived | Only then does cover keep pace with building prices. | | Gross negligence | waived up to €5,000 | waived up to the sum insured | A candle or barbecue left unattended is a classic reason for a reduced payout. | | Drain pipes | inside the building | also on the plot and beyond | Root damage to drains is common and expensive to dig out. | | Clearing costs | limited to a percentage | up to the sum insured | Disposal after a fire can be a large share of the claim. | | Natural hazards | available as add-on | available in all hazard zones | Heavy rain also hits houses far from any river. | | Lost rent | 12 months | 24 months | Rebuilding after a major loss often takes more than a year. | | Solar panels | covered for the same perils as the house | all risks including lost feed-in income | Panels are a significant value on the roof. | ## Insurers on the German market Many German property insurers write buildings cover, including regional public insurers. Some accept houses with past claims or in high flood zones only with restrictions. This list is a market overview. - **Allianz**: nationwide, agents and brokers - **HUK-COBURG**: own sales network only, does not work with brokers - **R+V**: insurer of the cooperative banks - **Provinzial**: public insurer within the savings banks group, regional focus - **VHV**: Hanover-based, strong in broker business - **Württembergische**: part of the W&W group, agents and brokers - **Rhion**: part of the RheinLand group, sold through brokers - **AXA**: agents and brokers - **Alte Leipziger**: mostly broker distribution 155 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance. (Feuer, Sturm, 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 - **Pipe bursts behind the bathroom tiles** (around €3,000 to €15,000): Escaping water is a basic peril. The policy pays for finding the leak, opening walls, repairs and drying. - **Tree roots crack the drain in the garden** (around €2,000 to €8,000): Drain pipes outside the house are often excluded in basic policies. Stronger ones include them anywhere on your plot. - **Woodpecker drills into the insulation** (around €1,000 to €6,000): Animal damage is not in the model conditions. Some strong policies pay for woodpeckers and martens up to a limit. - **North Sea storm surge floods the house** (easily five figures): Storm surge is excluded even with natural hazards cover. On the coast, dykes do that job, not insurance. - **Hail cracks the roof tiles** (around €3,000 to €20,000): Hail is a basic peril in every German buildings policy. Rain that then gets in through the damage is covered too. - **Hidden leak: €1,500 water bill** (around €200 to €2,000): Lost water is not physical damage. Strong policies reimburse the extra consumption after a burst pipe up to a set amount. ## Myth or truth - „Buildings insurance is compulsory for homeowners in Germany." ✘ No, there is no legal requirement. Your mortgage lender will almost always ask for proof of cover, though, and without it every fire is your loss alone. - „German insurers only call it a storm once the wind reaches force 8." ✔ Yes, that is the usual definition, around 62 km/h. If weaker wind is recorded nearby, the local reading from the German weather service can still settle it. - „If your neighbour's tree falls on your roof in a storm, the neighbour pays." ✘ Not usually. It is a storm claim on your own policy. The neighbour is only liable if the tree was visibly diseased and they ignored it. - „Your buildings policy can pay to clear the rubble after a fire." ✔ Yes, clearance, demolition and disposal costs are included. Basic policies cap them, stronger ones pay up to the full sum insured. - „Solar panels on the roof make no difference to your buildings policy." ✘ They do. The panels raise the rebuild value and must be declared, otherwise the whole house may end up underinsured. ## Common mistakes - Keeping the seller's old policy without checking sum insured and flood cover - Assuming heavy rain counts as a burst pipe claim - Forgetting to declare a loft conversion, carport or solar panels - Leaving a vacant house unheated in winter without draining the pipes - Comparing only premiums and ignoring the gross negligence clause ## FAQ ### What is the difference between Hausrat and Wohngebäude? Wohngebäude covers the building: walls, roof, fixed installations. Hausrat covers what is inside: furniture, clothes, electronics. A simple test is to imagine turning the house upside down; whatever falls out belongs to Hausrat. ### Does buildings insurance cover floods in Germany? Only if you add natural hazards cover (Elementarschadenversicherung). Standard policies exclude flooding, heavy rain and sewer backflow. Government aid after floods has been limited in recent years, so do not rely on it. ### Why does my premium go up every year? Because it is linked to an index of building costs and construction wages. When those rise, your sum insured and premium rise with them. Insurers may also adjust rates because of higher claims costs. ### Can I choose my own insurer if the bank asks for buildings cover? Yes. The lender can require cover and ask to be noted on the policy, but it cannot force you to use its partner insurer. You simply provide proof of an adequate policy. ### Are solar panels on my roof covered? Often yes, as part of the building and against the same perils as the house. Operating errors, theft, short circuits and lost feed-in income are usually not included. For those you need dedicated solar panel insurance. ### What happens if I do not rebuild after a total loss? You normally receive only the current value of the building, not the full rebuild cost. The full amount is paid when reconstruction is carried out or guaranteed within the period set in the policy, typically three years. ### I own a flat. Do I need buildings insurance? Usually not. German law makes adequate insurance of the common property part of proper management by the owners' association, and the cost is shared through the monthly house money. You still need contents insurance for your belongings. ### Can the insurer cancel after a claim? Yes. After a claim both sides have a right to cancel. Insurers use it mainly after repeated water damage. If that happens, keep evidence of any pipe renovation, as new insurers will ask. ## Legal basis and sources - [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-buildings-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.