Whoever builds his own house or renovates an old building, has his hands full dealing with building partners, craftsmen and financing. Insurances easily take a back seat. This usually requires new insurance for the construction phase and for the finished house. Here, builders learn everything they need to know to get the right insurance when building.
During the construction phase, the builder needs a whole package of insurance to be prepared for all sorts of eventualities: damage from the shell, accidents by private helpers, but also a heavy rain on the site can be expensive.
Many policies also change after the construction period: If a carcass is damaged by lightning strikes, the fire shell insurance, in the finished house, the homeowners insurance. Here you can find out for which purpose which insurance makes sense for builders and which can be worthwhile in addition to get the right insurance when building.
Get the right insurance when building in the construction phase: owner’s liability and construction insurance
During the construction phase – whether new or remodeled – the client is liable for all damage resulting from the construction and the building plot, for which no other responsible person can be found:
A storm hurls a scaffolding bar onto the neighbor’s car. A falling roof tile injured a passerby. A visitor to the construction site stumbles and falls. In such cases, a builders liability insurance.
An insurance for a $250,000 home ownership building is already between $100 and $250 to have. Smaller construction projects are included up to a construction cost of $25,000 or even $50,000 usually in the private liability insurance. However, if this sum is exceeded, a property owner’s liability insurance must be completed from the outset.
The building services insurance (formerly: building insurance) is also only necessary during a construction project. It is needed if unforeseen damage to construction work, building materials or finished components and thus additional costs arise due to force majeure. For example: The pit is full of water and the screed is destroyed.
Depending on the insurer, risks such as fire, theft or damage on transport routes are also covered. The insurance premium is also dependent on the construction costs. A client can transfer this to the individual contractor, if this was already agreed in the tender. For prefabricated houses, it is necessary to clarify with the manufacturer who will organize and pay for this construction insurance before placing the order.
Both the owner’s liability and construction insurance usually apply to the receipt of the building, but a maximum of two years. Some companies grant special tariffs for prefabricated houses with cheaper premiums and a term of six months.
Also helpers at the construction must be secured
Anyone who places their money on private helpers, either free of charge or in exchange for wages, must register them with the local community accident insurance, depending on their responsibilities. Thus, the helpers are insured in the event of an accident on the construction site as well as for commuting accidents between the apartment and the construction site.
The consequences of the accident of the client and spouse are not covered by the statutory accident insurance. A voluntary insurance is possible there, but that is usually very expensive. Builders who do a lot of work on their own should therefore take this opportunity to think about private accident insurance.
Get the right insurance when building: fire shell insurance
A body shell is insured by the fire shell insurance against damage from fire, lightning, explosion and implosion. Most lenders require the submission of an appropriate policy before paying out a loan. As a rule, this insurance is included in homeowners’ insurance for a limited period of time – usually six months to a year before earliest days – and is therefore virtually non-existent in homeowners insurance.
Get the right insurance when building: the finished house
A homeowners insurance needs every real estate owner, whether he builds new or buys an existing property. It insures damage caused by fire, tap water, storm and hail on the building itself as well as on the parts of the building (eg garage, roller shutter, awning, central heating system, satellite dish). The scope of services varies greatly. Lightning overvoltage damage by lightning is by far not included in any homeowners insurance.
With the acquisition of a building, an existing homeowners insurance is automatically transferred to the buyer. Within one month of entry into the land register, the latter may decide whether to continue the insurance, terminate it immediately or at the end of the current insurance year. A homeowners insurance does not pay indefinitely, but the full damage – up to the agreed sum insured.
This insurance is usually taken out as bundled or linked “revaluation insurance”. Behind this formulation hides a highly complicated calculation mode. The basis is the fictitious insurance value 1914. This value is multiplied by the annually changing floating new building value. These values, which are calculated by the German Insurance Association, include increases in the cost of construction materials and wages. The result of the calculation is the rebuilding value of the house, which would be paid out in case of a total loss.
What protects the house insurance?
At the latest after moving into your own home, it is important to check the household contents insurance or think about the conclusion of such. It pays for any damage caused by fire, tap water, storm, hail, robbery, vandalism or burglary the necessary money to re-purchase or repair the affected furnishings. The insurance does not cover damage caused by the carelessness or carelessness of the owner.
Who concludes a home contents insurance, even names the sum insured. Ideally, it corresponds to the new value, ie the replacement price of things of the same kind and quality in mint condition. If the replacement value of the household is higher than the selected sum insured, then the insurance in the event of damage, even in the case of minor damage, only replaces this proportionately.
Those who want to avoid this must either calculate the new value of their home contents by means of systematic cataloging or with the help of valuation tables. Or he agreed “sub-insurance waiver”. Then the value is calculated according to a formula given by the insurance company. For the contribution amount, besides the sum insured, the place of residence also plays a role. Possible supplements to household insurance are, for example, insurance against bicycle theft and glass insurance.
Special case elemental damage
In both homeowners and homeowners insurance, protection against tap water extends to damage caused by burst pipe, but not flood, heavy rainfall or backwater caused by these hazards. Such natural events now also affect regions that have not previously been classified as risky regions. Therefore, every homeowner should consider whether he needs elemental damage insurance. It is offered by many companies as a supplement to household and homeowners insurance.
However: Interested parties without need to obtain the addition without further notice. For residents of designated risk areas, however, hedging is not possible at all or only with great difficulty or at relatively high premiums.
Protection against dangers emanating from the house
Landlords and homeowners are required to keep their property and their house safe from driving and in traffic. If a passerby slips out on the icy sidewalk or if his neighbor’s carport is damaged by a rotten branch, the owner can be held liable.
In the construction period such cases are covered by the owner’s liability. After moving in, the private liability insurance usually offers owners of a self-occupied single-family home sufficient protection. Stiftung Warentest also recommends here: Select a sum insured of at least three million euros on a lump sum for personal injury and property damage.
Anyone who owns a vacant lot, a not exclusively self-occupied or fully rented house, however, needs a homeowners liability insurance. It is also important for owners of condos. However, check: Mostly there is already a homeowner’s liability insurance for the whole house through the caretaker. Many insurance companies offer special rates for owner associations.
Anyone who owns or maintains a heating oil tank or liquefied gas tank can hardly avoid having oil tank / water damage liability insurance. If fuel oil leaks and contaminates soil and groundwater, it will cover the costs of dredging, draining and disposing of the polluted soil as hazardous waste. The policy also protects against claims for damages.
