Insurance during construction after construction

Important for insurance in building a house

 

Resulta ng larawan para sa construction insurance

  • Insurance cover during the construction period can protect owners in the event of damage before high costs.
  • Important construction insurances are building services insurance, builder’s liability insurance and homeowners insurance. Optionally, the insurance cover can be supplemented with a construction completion insurance.
  • Without insurance coverage, building owners face enormous costs in the event of damage, which can lead to financial ruin.
  • Some contributions for construction insurance as well as for the builder’s liability can be claimed for tax purposes.

Here you will find an overview of all insurances that home builders can complete. They are ordered by phase and priority.

Home construction insurance before construction
  • Owner’s liability: This insurance covers the costs of damage to property and personal injury caused to third parties.
  • Personal insurance: Optional products such as a residual debt insurance with loan default or a term life insurance can protect the construction loan.
  • Legal protection : In order to be protected in legal disputes surrounding the construction, a legal protection insurance offers.
Home construction insurance during the construction period
  • Construction Insurance: This insurance covers the costs of damage, theft or vandalism at the construction site. The transport of tools or building materials is also secured.
  • Construction helper insurance : All accidents are covered by private construction helpers.
  • Raw construction insurance: The insurance covers all damage caused by fire.
  • Building completion insurance: Builders can secure this product in the event of insolvency of the contractor.
Home construction insurance after completion
  • Homeowners insurance : The cover covers damage to the house, which can be caused by tap water or fire.
  • Glass insurance : This allows homeowners to cover all damage to glass windows or glass doors.
  • Water Liability Insurance : This product covers damage caused, for example, by a leak in the oil tank.
  • Building insurance : This is usually a combination of household, homeowners and new construction insurance .
  • Elementary damage insurance: This additional protection can supplement a homeowners insurance.
  • Household insurance : Household insurance covers damage to the interior and household.
  • House and property owner liability insurance: This insurance is required when homeowners rent their property. The insurance covers the negligent violation of traffic safety obligations.

More detailed descriptions can be found below.

So you can combine the insurance

Many home construction insurance policies can be combined. So it is customary to combine the homeowners insurance with a natural hazard insurance. The Feuerrohbauversicherung is in many cases part of a homeowners insurance. After the completion of the house, it will be transferred to a pure residential property insurance.

Those who take out home contents insurance often benefit from a glass breakage insurance. Otherwise, most home contents insurance can be extended by a glass breakage clause.

Policyholders should also check their existing personal liability insurance. In many cases, there is already a client liability as well as a house and landowner liability integrated. However, it is important to pay attention to the registered amount of construction, so that the insurance coverage of the existing policy is sufficient.

Are some insurances useful during the construction phase?

 

Resulta ng larawan para sa construction insurance

During the construction of a house and landowners liability can be useful. For example, children play on the property and injure themselves, seize the house and landowners liability. This also applies if the site is first acquired and not immediately built. In this case, the owners are insured for property damage and personal injury that others incur on their property. However, during the construction phase, it may also be sufficient for a builder’s liability if persons or things are damaged in direct succession by the construction site.

A household insurance is less useful during construction, as it only the household contents is secured, which will not be available in the shell.

Different premiums for solid or prefabricated houses

Who builds a prefabricated house, especially in the builder’s liability as well as the construction insurance in comparison to the construction of a solid house can save considerable. Since less work is estimated for the construction phase and thus the risk of accident or loss is lower, the insurance companies give up to 50 percent discount on the insurance premium when a prefabricated house is built.

Insurance before building a house

 

Resulta ng larawan para sa construction insurance

Principal’s liability

Every client is responsible for all things that happen on the construction site. The owner’s liability insurance covers the costs of damage to persons or property. For example, the policy covers the damage caused by a fallen roof tile on a car parked in front of the property.

When concluding the insurance, it is important to pay attention to the amount of the cover. Anyone who builds much in their own efforts must expect higher premiums. In addition, the builder’s liability in house planning without an architect or a construction company usually can not be completed.

The insurance period of the owner’s liability extends from the start of construction to the completion of the building. The cost of the owner’s liability usually amount to less than 100 euros per year. Some insurers offer the combination with a construction insurance. In this case, policyholders can again save on the premium. A comparison of the benefits should be made in each case. It is important that the insurance is completed before the start of construction.

The costs for the owner’s liability can be claimed in the tax return.

Payment protection insurance

To secure construction loans, the residual debt insurance can be used. Depending on the agreed conditions, the residual debt insurance repays the outstanding loans if, for example, the policyholder becomes unemployed without being liable to pay.

Even in the event of incapacity for work or in the event of death, the residual debt insurance can continue debt repayment. Who wants to make sure that relatives can continue to build the house in the event of damage without financial loss, should conclude such insurance.

The amount of the insurance premium depends on the contractually agreed services and can not be stated on a flat-rate basis. The insurance period is based on the duration of the debt repayment.

Term life insurance

A term life insurance is required by some banks as a hedge for a construction loan. In the event of death of the borrower, the agreed sum insured will be paid. With this money, open loans can be settled. It is important that policyholders calculate the sum insured exactly.

It is recommended that the term life insurance be dynamically adjusted to the falling residual debt and thus the premiums also fall. The insurance premiums can be deducted from the tax.

Legal expenses insurance

A legal expenses insurance covers the costs of legal disputes that may arise during the construction phase. For example, policyholders are protected when neighbors make claims or contractors make unauthorized claims. The owner protection also helps owners 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. The cost can be at a construction cost of 200,000 euros at about 200 euros annually. A deductible is common at most rates.

Avoid double insurance by careful examination

Before concluding the insurance, consumers should check whether their private legal protection insurance already contains property owner protection. This way you can avoid double insurance and unnecessary premium payments.

Possibly an existing legal expenses insurance can be extended against a small premium surcharge. An insurance comparison can also help save money.

A property owner’s insurance can not be deducted from the tax.

Insurance during the construction of the house

 

Resulta ng larawan para sa construction insurance

Works insurance

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 caused to the building under construction as well as to building materials and tools due to weather conditions, vandalism or theft.

Excluded are damages caused by fire. 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 cost of construction insurance depends on the amount of construction. The amount of the premium is usually one tenth of the amount of the construction. It is important that policyholders check the conditions before concluding the contract. In principle, every client should take out this insurance, since the low insurance costs in case of damage count many times over.

Landlords have the opportunity to deduct the construction insurance for tax purposes.

Bauhelfer insurance

As soon as private construction helpers work on a construction site, building owners must, by law, apply for construction helper insurance from the responsible Berufsgenossenschaft Bau. The insurance works like an accident insurance and bears the costs if a construction worker has an accident at the construction site or on the way there.

The legal building assistance insurance is billed on the hours worked by the construction workers. The fees vary from state to state. If a construction worker works less than 40 hours on the construction project, there are no fees to pay.

The basic protection of the construction worker covers the cost of necessary treatment after accidents. However, the benefits are limited. Builders can protect themselves against high follow-up costs if they extend the insurance cover to a private home helpers insurance.

This additional insurance also covers the costs of disability or death of the construction worker. Policyholders should make sure before closing that really all construction workers are reported. In addition, the sum insured applies to all construction workers. Therefore, it is advisable to carefully check the coverage.

Fire insurance shell

The Feuerrohbauversicherung supplements the construction insurance. It attacks all damage to the construction caused by fire. The services are carried out in case of fire due to explosion, lightning or short circuits.

Like the homeowners insurance, the Feuerrohbauversicherung for tenants and individuals is not tax deductible. Landlords can assert the cost of insurance, however.

Baufertigstellungsversicherung

If builders want to protect themselves fully against costs that come in the event of bankruptcy of the construction company or in case of construction defects, they should complete a building completion insurance. It intervenes when the construction company is insolvent and ensures the continuation of the construction.

The insurance period usually covers the period from the start of construction to the expiry of the warranty period. The scope of insurance depends on the choice and scope of protection desired. The costs for the building completion insurance are on average at about three percent of the construction cost. As the costs are higher in comparison with other homebuilding insurances, therefore, all conditions should be scrutinized before concluding such insurance.

Insurance after the house construction

 

Resulta ng larawan para sa construction insurance

Home Insurance

This insurance usually covers all damage to the building caused by fires, explosions, frost, tap water, burst pipes, storm or hail. Homeowners often have insurance companies that already cover some of these risks. However, bringing fire, storm and tap water insurance into a single insurance package, homeowner insurance, can bring benefits. The insurance is basically recommended for all homeowners. When it comes to insurance coverage, it is important to pay attention to an 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 over several years, premium reductions are to be expected. If other policies are used with the same insurer, discounts are also possible.

Tax only landlords can sell the homeowners insurance.

glass insurance

This is a special insurance, which mainly takes over glass damage. Such a policy is recommended when houses have, for example, a conservatory or large glass fronts. Before concluding the contract, it should be checked exactly which glass damage is covered, how high the insurance sum is and what the deductible is. In many cases, the glass insurance is already included in a liability or home insurance.

It is therefore advisable to check existing policies with regard to their services. As a glass insurance individual insurance usually becomes more expensive, you should instead expand your household contents insurance with a glass insurance. The standard term for this insurance is usually one year.

Waters liability insurance

This insurance product is especially recommended for homeowners who heat with oil. If a leak occurs in the oil tank and the water is polluted by it, the insurance will cover the costs for repairing the damage. In many cases, this insurance is included in a conventional private liability.

So before an independent water liability is completed, you should check whether there may be a double insurance. As soon as there is no risk of water pollution by a tank, the water liability can be terminated.

building insurance

The building insurance is a combination of household, homeowners and new construction insurance. In this way premiums can be saved. The term for this combination insurance is individually determined by homeowners. They usually have the option of canceling the insurance on an annual basis.

Hazard insurance

This is an additional insurance for homeowners or household contents insurance, with which homeowners can hedge against natural hazards. These include damage caused by floods or earthquakes.

Such elementary insurance is recommended whenever policyholders live in an endangered area. The costs are usually set individually by the insurer, are dependent on the respective risk and can not be quantified on a flat-rate basis.

Household

The household contents insurance is considered as an important basic protection of the interior and other components of the household. Before concluding, policyholders should carefully check the total value of their household contents, otherwise there is a risk of underinsurance.

In case of damage, the insurance company can then limit its performance. It is therefore advisable to inquire which sum insured per square meter to exclude underinsurance. If home contents insurance is required for professional reasons, it can be deducted pro rata for offices or study.

House and property owner liability insurance

Private homeowners are usually covered by personal liability insurance for damages that occur to third parties on their own property or in the house. Landlords need in these cases, however, a special insurance protection, which can be achieved through a house and Grundstücksbesitzerhaftpflicht.

The insurance period is usually one year. When the insurance is taken out, attention should be paid to cover of at least three million euros for damage to property and personal injury. In many cases, private liability can be favorably supplemented by a landlord and landlord liability for landlords.

Landlords can claim the cost of this special liability in their income tax return as income-related expenses.