Building insurance: comparison & costs

Which parts of the house are covered by building insurance?

Roof, exterior walls, windows, permanently installed heating and sanitary systems: buildings insurance covers the house and the components specified in the contract. If an insured risk damages them, the cover concerns repair or restoration. Major damage may require rebuilding.

The dining table and the clothes in the closet belong to a different insurance item. There is that for them Household contents insurance. If you live in your own house, you therefore have to consider these two areas separately.

One house, two insurance items

Look at the two areas.

FacilityBuilding

Hervorgehoben: Dach, Wände, Fenster und Heizung als Beispiele für Gebäudebestandteile.

Household contents

Movable furnishings and personal belongings in the event of an insured peril.

Buildings insurance

The building and its contractually fixed components.

Simplified allocation. For fitted kitchens, tenant improvements, and certain cost items, the policy conditions apply.

Go to household contents insurance

Garages, carports and garden sheds are not included simply because they are on the same property. Specify them and check the location, size, design and maximum amounts. This also applies to high-quality equipment, extensions and technical systems.

For a fitted kitchen, the rule of thumb ‘everything movable is household contents’ is not sufficient. Custom‑made fixtures, standard kitchens, and items brought in by the tenant can be classified differently. The classification should be determined before any damage occurs.

What damage does homeowners insurance cover?

The typical dangers are fire, tap water as well as storms and hail. They must actually be agreed in the contract. The damage to the house alone is not enough; its cause must match the insured protection.

Fire, lightning and consequential damage

A covered fire can destroy the roof, but can also leave behind smoke, soot and firefighting water. The policy specifies which reinstatement and consequential costs are covered.

Overvoltage, scorching damage, and technical defects are separate checkpoints.

Water damage from pipes and burst pipes

Water escaping improperly can damage walls and floors. Which pipes, connections and installations are insured is a separate contractual question.

Do not simply assume that lines outside the house or property are also insured.

Storm and hail

Damaged roof tiles or building parts caused by hail, and storm-damaged roofs, are typical claims. Storms usually require at least wind force 8; this threshold does not apply to hail.

Also check items attached to the exterior and damage caused by penetrating precipitation.

Costs after a loss

Clean-up, demolition, protective measures or an insured loss of rent can be part of the service. Such positions need appropriate boundaries and time periods.

Cover for lost rent following building damage is not general protection against missed rent payments.

When it comes to water damage, the source of the water is crucial.

A burst pipe, a flooded street, and pressing groundwater may leave the same wet wall behind. For insurance, these are different cases. The following examples show which position in the contract you have to look for.

Natural hazard insurance supplements residential building insurance against other natural hazards. These can include flooding, backwater, landslide or snow pressure. Heavy rain is also relevant away from a river. Therefore, check this component for your house without assuming long-term security from an address that has so far been free of damage.

Residential building in the rain with visible drainage at the entrance.

A pipe in the wall breaks.

Check the mains water and pipe burst component here: Is the pipe covered, what consequential damage is insured, and which costs for leak detection, drying, and restoration are covered? Old pipes are not automatically excluded, but their condition and any renovations must be disclosed when taking out the policy.

Heavy rain floods the property; water enters the house.

For this, you generally need flood protection in the elementar module. The contract’s definition applies. Sewage water triggers additional backflow protection; mandatory safeguards and maintenance obligations may be critical. An elementar module is no guarantee for every rainstorm damage.

Groundwater pushes through the basement wall from below.

Under standard conditions, groundwater that does not reach the earth's surface is not covered solely by the natural hazards module. Clarify the cause professionally and read the exclusions. The same distinction can also be important for damaged items in the basement.

The building insurance policy does not automatically protect your sofa or washing machine in case of insured elemental damage. For further details, check the household contents policy for elemental protection. Deine Einrichtung erfordert Elementarschutz im Hausratvertrag stand. Check both policies, their deductibles, and any possible waiting period for inclusion.

How much does building insurance cost?

A single-family house with new wiring represents a different risk for the insurer than an older building with an unclear renovation history. Living space, year of construction, design, roof, use, location, and prior damage influence the premium.

Compare building insurance with the same details. An area that is accidentally recorded too small makes an offer cheaper, but not suitable. The term “renovated” is also too imprecise if the calculator wants to know when all water pipes were replaced.

These differences only become apparent upon closer inspection.

How high should clean-up costs be? Are drainage pipes on the property included? Does the waiver of benefit reduction for gross negligence apply up to the full sum insured or only up to a limit? What additional costs arise from regulatory reconstruction requirements, and does the tariff cover them?

Elementary damage may include a separate deductible (e.g., percentage with min/max limits). Ensure you understand this in euros—even a low annual premium fails if you can’t cover the deductible after a major claim.

Your comparison

Compare with actual building data.

Have the previous policy, area information and renovation certificates ready. In this way, the services can be compared sensibly.

Go to the building comparison

The purchase price does not count towards the reconstruction.

The purchase price includes location, property and market situation. After destruction, however, you need money to rebuild an equivalent building. These values can differ significantly. Simply taking a sum from the purchase contract can therefore lead to inadequate cover.

Tariffs based on living space

Here the protection is based on the correctly specified area and building characteristics. The area definition may differ from that stated in the sales brochure. Check maximum compensation, equipment and the requirements for a waiver of underinsurance.

1914 Value and Sliding New Value

The value 1914 is a historical calculation value, not a current euro purchase price. In the case of corresponding contracts, the protection is linked to the development of construction costs via adjustment factors. Have the valuation and the index used explained in a comprehensible manner.

Sliding replacement value insurance can help take increasing construction costs into account. However, it does not correct incorrectly recorded living space or concealed extensions. The payment of the replacement value share after a total loss can also be tied to timely restoration. Read these requirements in the contract.

Do not just file renovation plans in your building records. A converted attic, a new heat pump, or a photovoltaic system can change the insured value and the coverage required. Standard risk coverage is not always sufficient for theft, technical damage, or loss of income from such systems.

Condominium and house purchase: read the existing contract first.

In the case of a condominium, there is often building insurance through the homeowners' association. Get the policy, conditions and endorsements from the administration. Check which components, installations and hazards are covered and who is reporting damage. A second contract on suspicion does not resolve any ambiguities.

Your household contents remain a separate topic. Even a well-insured community of owners is no substitute Appropriately sized household contents insurance. With high-quality interior fittings, it may also be necessary to coordinate with the property management and both insurers.

When you buy a house, the old policy doesn't just end.

The existing contract is generally transferred to the buyer upon transfer of ownership. Get it in advance and clarify the timing, contribution and extent of risk. The purchaser has special termination rights with a short notice period; § 96 VVG generally states one month from purchase or, if this is not known, from knowledge of the insurance.

The new protection should be accepted before you risk a gap. Inform the insurer about the change of ownership and coordinate the bank's requirements when financing.

Two people look through construction plans and building documents at a table.

What you should consider when making renovations and in the event of a claim.

Report relevant changes in a timely manner: renovations, vacancies, different uses, or additional installations can affect the contract. Also adhere to agreed security and maintenance obligations. If you do not use the house for an extended period, you should clarify the applicable rules separately.

Safety first
In case of acute danger, get help. Do not enter flooded or damaged areas just to take photos.
Report a claim
Inform the insurer immediately. If there is a community of owners, also contact the responsible administration.
Document cause
If possible, secure photos and receipts. Coordinate the cause, drying and other work with experts and insurers.
Allocate costs
Record invoices, emergency measures and affected parts of the building. If you have multiple insurers, use the same information in a comprehensible manner.

If furniture or other movable property is damaged at the same time, an additional notification to the household contents insurance is required Report to the household contents insurance added. Wall repairs and cabinet replacement may arise from the same event but fall under different contracts.

Häufige Fragen: Wohngebäudeversicherung

Is homeowners insurance mandatory?

There is no legal obligation to insure private residences. However, lenders may demand coverage. Losing your home could be financially burdensome—always verify elemental protection explicitly.

What is covered by building insurance?

The designated building and the components covered in the contract are insured against the agreed risks. Typical modules are fire, pipe damage, as well as storm and hail. Additional agreements may be necessary for other natural hazards, certain outbuildings, and technical systems. Building insurance is not a blanket repair guarantee for the house.

Does homeowners insurance cover all water damage?

No. Water from a broken insured pipe is treated differently than flooding caused by heavy rain. Backflow is also not automatically included in pipe water coverage. Even a damp cellar caused by groundwater rising from below is not insured simply because an elementary risk module exists. Cause, definitions, and exclusions must align.

Are the heat pump and photovoltaic system included?

That depends on the contract. Specify the location and design of the systems and check whether they are protected against the insured risks. Theft of an external heat pump, technical defects, loss of yield or operating errors are not automatically covered. Depending on requirements, additional system or technical protection may be an option.

As an owner, do I also need contents insurance?

The building contract does not automatically replace your movable furnishings. Household contents insurance is responsible for furniture, clothing and technology. Whether you need them depends on what replacement costs you could bear yourself. If the facility is also to be protected against flooding, elemental protection must be included in the household contents contract.

What happens to building insurance when ownership changes?

When selling, the existing contract generally transfers to the purchaser along with ownership. Find out early about the exact transition, current protection, and possible termination rights. § 96 VVG provides a short deadline for the purchaser. Don't cancel too early: ensure follow-up coverage is accepted in time and starts without a gap.

Why does my premium rise despite a claim-free year?

With sliding replacement value insurance, rising construction costs can lead to an adjustment of protection and premiums. In addition, tariff contribution adjustments can play a role. Read the reasoning in the letter and only compare offers with the same building details and risks. Not every adjustment automatically triggers the same right of termination.

Your comparison

Have your house documents ready.

Compare building insurance policies with accurate details on floor area, construction type, and fixtures. Natural disaster cover and deductibles should be considered together.