For most people the house is the largest asset they will ever own – and building insurance (Wohngebäudeversicherung) is often not looked at for 20 years.
What is insured?
The residential building with everything permanently attached: roof, walls, windows, heating, pipes, wiring, floors. Outbuildings – garage, carport, shed – only if listed in the policy.
The fitted kitchen question: a custom-built, individually fitted kitchen usually counts as part of the building; a standard kitchen from a furniture store usually counts as contents. When in doubt, clarify in writing.
Insured risks
Fire, tap water (burst pipes, frost) and storm from wind force 8 plus hail. Heavy rain, river floods and groundwater are not in the basic cover.
Natural hazards – and the planned compulsory cover
Flooding, heavy rain, sewer backflow, earthquake, landslide, snow pressure: only the natural hazards add-on pays. According to the German insurers’ association (GDV), around 59 % of residential buildings had this cover at the end of 2025.
Status (October 2026): on 21 October 2026 the Federal Ministries of Justice and Finance presented key points for compulsory cover: new policies would include it automatically, existing contracts would be extended within a year, deductible capped at 10 % of the payout or 20,000 euros. Status: discussion paper – no draft bill, nothing decided. A bill is not expected before 2027.
Sliding new value and the “1914 value”
- Sliding new value: the insurer pays today’s rebuilding cost, and the sum insured moves with construction prices every year.
- 1914 value: the house is notionally valued at 1914 prices and multiplied each year by the building price index. It works if the base value is right; the consumer advice centres consider it opaque.
If the sum is clearly too low – an extension never reported – every payout is reduced proportionally (§ 75 VVG).
Gross negligence
Hob left on, fire: the insurer may reduce the payout (§ 81 VVG). Good tariffs waive this.
Solar panels
Rooftop PV can usually be added. Inform the insurer before installation, check theft, surge and loss of yield, and meet lightning protection requirements.
Selling, bank, owners’ association
- Sale: the contract passes to the buyer (§ 95 VVG), who may cancel within one month of the land register entry (§ 96 VVG). The seller has no cancellation right.
- Bank: cancelling a financed house usually needs the lender’s consent. Never cancel without follow-on cover.
- Apartment: the owners’ association insures the building; the law requires fire insurance at new value (§ 19 (2) No. 3 WEG). You only need contents and liability cover yourself.
How to proceed
- Read the policy: buildings, risks, natural hazards yes/no, gross negligence waiver?
- Report changes: extension, heating, PV, garage.
- Check natural hazard cover regardless of politics.
- Check backflow valve and frost protection – your duties.
- When buying or selling, see notice periods.
General information, not legal, tax or investment advice. Sources: German Insurance Contract Act (§§ 75, 81, 95, 96 VVG), Condominium Act (§ 19 WEG), German Insurance Association GDV (06/2026), Federal Ministries of Justice and Finance (key points 21 Oct 2026, trade press), consumer advice centres (Verbraucherzentrale, 08/2026) – as of October 2026. Unsure whether your policy matches your house today? Get in touch.
