Builders are not required to take out fire insurance. However, fire damage carries an incalculable cost risk. If the body shell is not secured in the event of fire, mortgage financing may become impossible. On the other threatens the financial ruin in case of damage. For this reason, a Feuerrohbauversicherung is absolutely necessary when a new house is built.
Part of the building insurance
The Feuerrohbauversicherung is in most cases already part of the homeowners insurance. Thus, policyholders can complete their building insurance for the finished house already before its completion and are also at the same time during the construction phase for damage by fire hedged. The Feuerrohbauversicherung then applies during the construction of the house and automatically goes after the completion and acceptance of the building in a building insurance. The building is deemed to be ready for occupancy if it is habitable and is completed by windows, a roof and doors. In addition, the sanitary facilities and the electrical system must work.
Fireboat insurance can also be taken out individually. However, this option is seldom used in practice, as a homeowners insurance is often already included in a homeowners insurance policy free of charge.
Note insurance period
Policyholders must pay attention to what period of validity of the fire protection insurance policy is specified in the policy.
If it is foreseeable that the construction phase will take more time, this should be communicated to the insurer before the start of the insurance. In this way, there is no insurance gap. For this reason, some insurance companies extend the term of the fire engine insurance to 24 months when they take out homeowners insurance.
How to find a good fire protection insurance
Builders should also compare the products of different suppliers with the fire insurance company. Here it is important to pay attention to the following aspects:
- What is the coverage amount?
- What benefits does the future building insurance cover when a combination package is completed?
- What services does Feuerrohbauversicherung cover?
- How many months is the fire protection insurance free of charge for building insurance?
- How quickly does the insurance reimburse you for any damage?
- Does the insurance premium have to be paid in advance?
The insurance period
Builders are usually covered by the fire miner’s insurance over the six-month period during the construction phase. Many insurers also offer longer terms of up to two years.
If the construction period is extended, policyholders must expect that the insurer then demands a premium for the extension of the protection. But sometimes builders can count on the goodwill of the insurance company. This is especially true when it is only a minimum construction time delay.
The insurance coverage of the Feuerrohbauversicherung covers until the building is ready for occupancy.
Insurance cover during the construction period
During the shell construction phase you are only insured against damage caused by fire. In order to complete the insurance cover during the construction period, it is advisable to take out construction insurance. This insurance usually provides an all-risk coverage with the exclusion of fire damage.
Prerequisite for a construction loan?
Fire protection insurance is not a basic requirement for a construction loan. Since bank lending is tied to collateral, such a loan is usually required to take out a loan.
In the event of damage, the bank would otherwise have to expect a loan default and losses, because the built house would no longer be usable as collateral. Thus, not only the builder, but also the bank that provides the loan for the construction project is covered by the fire-boot insurance.
In addition to the Feuerrohbauversicherung are usually required by banks other insurance products for credit protection, which are also referred to as homeowner insurance. These include the building insurance as well as a term life insurance. While building insurance covers the loan repayment in the event of building damage due to natural events or other causes, the life insurance company bears the loan when a borrower dies.
That’s what the insurance does
A Feuerrohbauversicherung secures in its name damages caused by fire during the shell construction phase. Their scope of services is similar to that of a fire insurance . The latter is, however, completed for prefabricated buildings and not for shell construction.
The cause of the fire can be explosions, lightning strikes or fires in a Feuerrohbauversicherung. Some policies also cover fire damage after plane crashes or accidents involving rail vehicles.
However, fire insurance covers no damage caused by elementary events such as hail, storm or other polluters such as tap water or groundwater. In this case, however, the insurance coverage of a construction insurance, if it was completed by the builder.
The concrete services in case of damage
First of all, the recovery costs are borne by the insurer in case of damage. If, for example, damaged walls have to be renewed or a roof truss repaired, the insurance company will pay for the necessary work and material as part of the fire protection insurance.
In addition, the insurer also bears additional incidental costs incurred in remedying the damage. These costs are not to be underestimated and can be very high, depending on the scope of damage.
- Cost of cleanup : For example, if a roof is burned down, the charred remains must be removed and disposed of. The insurer assumes the costs for the work involved.
- Costs for the protection of the damage location : If building fences have to be set up or other security measures are taken, the insurance company bears the costs after a fire damage.
- Costs for replacement procurement : If machines can not be used for the time being, because they have to be repaired after an explosion, the insurance pays the replacement equipment.
- Costs of Required Permits : If a building permit or other fire-related approval expires or expires, the insurance pays the fees to re-apply.
Consumers should always pay attention to what amount of additional costs are covered. The usual practice of insurers is to provide a certain percentage of the total sum insured for ancillary costs. In the insurance policies, insurers’ benefits are broken down and quantified.
That costs the insurance
The cost of a fire shell insurance is usually not listed separately, if this insurance product is already part of a building insurance. In these cases the Feuerrohbauversicherung is integrated free of charge. However, depending on the nature of the policy, it may also be that consumers only have to pay part of the building insurance premium, as the insurance payment during the construction phase is lower than after the completion of the building.
How many policyholders ultimately have to pay for a fire endowment insurance / building insurance depends on various factors:
- Amount of coverage:
The coverage amount of a Feuerrohbauversicherung is usually determined by the value of 1914. This is a fictitious number that reflects the price the insured building would have earned in 1914. On the basis of the result, the amount of coverage is then estimated. The higher the coverage, the higher the insurance premium.
- Amount of the deductible:
As with most insurance products, there is also the possibility of fireboat insurance to increase the excess in the event of damage. However, a higher deductible usually has little effect on a significant discount on the premium. Builders and homeowners should rather consider whether they are willing to pay significantly more in favor of a provisionally lower premium in the event of damage.
- Scope of the insurance benefit:
A fire-boot insurance basically covers a large part of the damage caused by fire. However, it is worthwhile to study the insurance conditions and to check the benefits before you graduate. For example, policyholders may ask whether additional insurance premium costs are really necessary due to a special insurance benefit, such as protection in the event of a fire following a plane crash.