Which insurance companies offer home builders risk insurance
Insurance when building a house after the construction phase
Important for insurance when building a house
- Insurance cover during the construction period can save builders from high costs in the event of damage.
- Important construction insurances are construction insurance, builders' liability insurance and residential building insurance. The insurance cover can optionally be supplemented with construction completion insurance.
- Without insurance cover, building owners face enormous costs in the event of damage, which can lead to financial ruin.
- Some contributions for construction insurance such as building owner's liability can be deducted from taxes.
Here you will find an overview of all the insurances that builders can take out for house construction. They are sorted by phase and priority.
|Home construction insurance before the construction period|
|Home construction insurance during the construction period|
|Home construction insurance after completion|
More detailed descriptions can be found below.
So you can combine the insurance
Many home construction insurances can be combined with one another. It is common to combine homeowner insurance with insurance against natural hazards. In many cases, fire shell insurance is part of a residential building insurance. After the completion of the house, it will be transferred to a pure residential building insurance.
Those who take out household contents insurance often benefit from protection against glass breakage. Otherwise, most household insurance can be extended to include a glass breakage clause.
Policyholders should also check their existing personal liability insurance. In many cases, builders' liability as well as house and landowner liability are already integrated there. However, it is important to pay attention to the entered construction sum so that the insurance cover of the existing policy is sufficient.
Do some insurances make sense while the house is being built?
House and landowner liability can be useful during house construction. For example, if children play on the property and injure themselves, home and landowner liability applies. This also applies if the site is only acquired and not immediately built on. In this case, the owners are covered for property damage and personal injury that others suffer on their property. However, builders' liability may also be sufficient during the construction phase if people or property are directly damaged by the construction site.
Household contents insurance makes less sense during construction work, as it only covers household contents, which will not yet be available in the shell.
Different premiums for solid or prefabricated houses
If you build a prefabricated house, you can save a lot on building owner's liability and construction insurance compared to building a solid house. Since less work is estimated for the construction phase and the risk of accidents or failure is lower, the insurance companies give up to 50 percent discount on the insurance premium when a prefabricated house is built.
Insurance before the house is built
Every builder is responsible for all things that happen on the construction site. The builder's liability insurance covers the costs for damage to people or property. For example, the policy covers damage caused by a fallen roof tile to a car parked in front of the property.
When taking out insurance, it is important to pay attention to the amount of coverage. Those who build a lot on their own must expect higher premiums. In addition, building owner's liability for house planning without an architect or a construction company can usually not be concluded.
The duration of the builder's liability insurance extends from the start of construction to the completion of the building. The costs for the builder's liability are usually less than 100 euros per year. Some insurers offer a combination with construction insurance. In this case, policyholders can save more on the premium. A comparison of the services should be made in any case. It is important that the insurance is taken out before construction begins.
The costs for the builder's liability can be claimed in the tax return.
Payment protection insurance
The residual debt insurance can be used to secure building loans. Depending on the agreed conditions, the residual debt insurance will pay off the outstanding loan if, for example, the policyholder becomes unemployed through no fault of his own.
Even in the event of incapacity for work or death, the residual debt insurance can continue to repay the debt. If you want to make sure that relatives can continue to build the house without financial losses in the event of damage, you should take out such insurance.
The amount of the insurance premium is based on the contractually agreed services and cannot be given as a flat rate. The duration of the insurance is based on the duration of the debt repayment.
Term life insurance
Term life insurance is required by some banks as protection for a home loan. In the event of the borrower's death, the agreed sum insured will be paid out. This money can be used to settle open loans. It is important that policyholders calculate the sum insured precisely. More detailed information is also guaranteed by a credit comparison.
It is advisable if the term life insurance adapts dynamically to the falling residual debt and thus the premiums also fall. The insurance premiums are tax deductible.
Legal protection insurance
Legal protection insurance covers the costs of legal disputes that may arise during the construction phase. Policyholders are protected, for example, if neighbors make claims or contractors make unjustified claims. Legal protection for clients also helps clients in legal disputes with service providers or construction companies.
The amount of the insurance premium depends on the construction or purchase price of the building. With a construction cost of 200,000 euros, the costs can be around 200 euros per year. A deductible is common with most tariffs.
Avoid double insurance by carefully checking
Before taking out insurance, consumers should check whether their private legal protection insurance already includes legal protection for the builder. This avoids double insurance and unnecessary premium payments.
An existing legal protection insurance can possibly also be extended for a small premium. An insurance comparison can also help save costs.
A building owner's legal protection insurance cannot be deducted from the tax.
Insurance during house construction
The construction insurance is usually provided with an all-risk cover. It is therefore also referred to as "comprehensive insurance for construction". The insurance therefore covers all damage to the building under construction as well as to building materials and tools due to weather conditions, vandalism or theft.
Damage caused by fire is excluded. The insurance period is usually set at half a year up to 24 months. If the construction project takes longer, the insurance cover must be adjusted.
The costs of construction insurance depend on the construction cost. Usually the amount of the premium is one per thousand of the construction sum. It is important that policyholders check the conditions before concluding a contract. In principle, every builder should take out this insurance, as the low insurance costs pay off many times over in the event of damage.
Landlords have the option of deducting construction insurance against taxes.
Construction worker insurance
As soon as private construction workers work on a construction site, building owners must, according to the law, apply for construction workers' insurance from the responsible construction trade association. The insurance works like accident insurance and bears the costs if a construction worker has an accident on the construction site or on the way there.
The statutory construction worker insurance is billed based on the hours worked by the construction workers. The fees vary from state to state. If a construction worker works on the construction project for a total of less than 40 hours, no fees have to be paid.
The basic protection of the construction workers includes the assumption of costs for necessary treatments after accidents. However, the benefits are limited. Builders can protect themselves from high follow-up costs if they expand their insurance coverage to include private construction worker insurance.
This supplementary insurance also covers the costs in the event of disability or death of the construction workers. Policyholders should make sure that all construction workers are reported before taking out the contract. In addition, the sum insured applies to all construction workers. It is therefore advisable to carefully check the amount of coverage.
Fire shell insurance
The fire shell insurance supplements the construction insurance. It applies to all damage to the building caused by fire. The services are provided in the event of fires caused by explosions, lightning strikes or short circuits.
Like residential building insurance, fire shell insurance is not tax-deductible for tenants and private individuals. However, landlords can claim the cost of insurance.
Construction completion insurance
If building owners want to protect themselves comprehensively against the costs that they will have to face in the event of bankruptcy of the construction company or in the event of construction defects, they should take out construction completion insurance. It takes effect if the construction company is insolvent and ensures that construction can continue.
The insurance period usually covers the time from the start of construction to the expiry of the warranty period. The scope of insurance depends on the selection and the scope of the desired protection. The costs for the construction completion insurance are on average around three percent of the construction costs. Since the costs are higher in comparison with other home construction insurance, all conditions should be checked carefully before taking out such an insurance.
Insurance after house construction
This insurance usually covers all damage to the building caused by fires, explosions, frost, tap water, burst pipes, storms or hail. Homeowners often have insurance policies that already cover some of these risks. However, it can be beneficial to combine fire, storm and tap water insurance into a single insurance package called homeowners insurance. The insurance is generally recommended for all homeowners. When it comes to insurance, it is important to ensure that you have adequate coverage.
The amount of the premium depends on the value of the building. The insurance period is determined by the policyholder himself. As a rule, the standard insurance period is one year. If the insurance is taken out immediately for several years, premium discounts are to be expected. If other policies are used with the same insurer, discounts are also possible.
For tax purposes, only landlords can deduct homeowner insurance.
This is a special insurance that mainly covers glass damage. Such a policy is recommended if houses have a winter garden or large glass fronts, for example. Before concluding a contract, it should be checked exactly which glass damage is covered, how high the sum insured is and what the excess is. In many cases, glass insurance is already included in liability or household contents insurance.
It is therefore advisable to check existing policies with regard to their benefits. Since it is usually more expensive to take out individual glass insurance, you should expand your household insurance to include glass insurance instead. The standard term for this insurance is usually one year.
Water liability insurance
This insurance product is especially recommended for homeowners who use oil for heating. If a leak occurs in the oil tank and the water is polluted as a result, the insurance company will cover the costs of repairing the damage. In many cases, this insurance is included in conventional personal liability insurance.
So before you take out an independent marine liability insurance, you should check whether you have a double insurance. As soon as there is no risk of water pollution from a tank, the water liability can be terminated.
Building insurance is a combination of household contents, residential building and new building insurance. In this way, premiums can be saved. The term for this combined insurance is determined individually by homeowners. As a rule, you have the option of canceling the insurance annually.
Natural hazard insurance
This is an additional insurance for residential buildings or household contents insurance, with which homeowners can protect themselves against natural hazards. This includes damage caused by floods or earthquakes.
Such elementary insurance is always recommended if policyholders live in an area at risk. The costs are usually set individually by the insurer, depend on the respective risk and cannot be quantified across the board.
Household contents insurance is an important basic protection for interior furnishings and other components of household effects. Before taking out insurance, policyholders should carefully check the total value of their household items, otherwise there is a risk of underinsurance.
In the event of damage, the insurance can then limit its benefits. It is therefore advisable to inquire about the sum insured per square meter in order to rule out underinsurance. If home contents insurance is necessary for professional reasons, it can be deducted proportionally for offices or work rooms.
Home and landowner liability insurance
Private homeowners are usually covered by private liability insurance for damage that occurs to third parties on their own property or in the house. In these cases, however, landlords need special insurance coverage that can be obtained through home and property owner liability.
The insurance period is usually one year. When taking out insurance, care should be taken to ensure an amount of coverage of at least three million euros for property damage and personal injury. In many cases, private liability can be inexpensively supplemented with home and property owner liability for landlords.
Landlords can claim the costs for this special liability in their income tax return as income-related expenses.
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