KfW at a glance: Improving domestic conditions

• Abbreviation for Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation)
• Institution under public law and largest national promotional bank
• Objective: to improve social, economic and environmental conditions in Germany

Back to the wiki: Real Estate

Insurances for house construction – Your protection against six-figure risks

The fact that homeowners are generally liable for damages and accidents on the construction site — often regardless of actual fault — is unknown to most. The so-called duty of traffic safety makes you, as the homeowner, responsible for everything that happens on your “construction site.” A personal injury resulting in permanent disability can quickly cost between 1 and 5 million euros. Which insurances are actually sensible is shown in our overview of Real Estate Insurance — and additionally, a look at the entire additional costs real estate purchase is worthwhile, as insurance premiums often get overlooked in the financing plan.

The 5 Most Important Homeowner Insurances at a Glance

Builder’s liability insurance – Protection against personal injuries

Although your private home is usually built by a third-party company, as the homeowner you personally are liable for damages caused by the construction site. If the excavation is not adequately secured, a child falls in and suffers permanent damage, you are liable — even if the construction company messed up the safety measures. Personal injuries with long-term consequences can quickly reach damage sums of 1 to 5 million euros.

What private liability insurance does NOT cover

A standard private liability insurance policy covers construction projects up to a building sum of about 50,000 euros — suitable for minor renovations, completely insufficient for a new build. Those who do not top this up are personally liable with their private assets in the event of damage.

What to look for in homeowner’s liability insurance

• Insurance coverage: at least 5 million euros for personal and property damage — for higher-value construction projects, ideally 10 million euros
• Duration: until the building is completed and ready for occupancy, ideally with an automatic transition into private liability insurance
• Own work covered: important if you are doing some of the work yourself
• Transport safety obligation: explicitly included
• Construction failure due to insolvency of the construction company — not included in every policy

The contributions vary depending on the construction amount and provider between 80 and 250 Euro for the entire construction period. In relation to the potential damage, an insignificant amount — and therefore essential for every project around Buy a house and new construction.

Fire rough construction insurance – the mandatory policy of banks

As house construction takes several months, the unfinished rough construction is constantly exposed to fire hazards: welding work, drywall work, faulty construction dryers, lightning strikes or arson. A fire at the rough construction stage can mean total loss in the worst case — and you continue to pay the loan without a house.

When the building insurance applies – and when it does not

The standard building insurance only kicks in once the property is habitable. For the period before that, you need fire and raw construction insurance. Practical: Many insurers offer it for the first 12 to 24 months free of charge, if you commit to taking out the building insurance with the same provider afterwards.

Why the bank demands this insurance

Banks usually make the disbursement of the construction loan dependent on a concluded fire and raw construction policy — after all, the raw construction is the security. Anyone who doesn’t want to endanger their real estate financing concludes the policy before the first disbursement date. This is especially true with the current building interest rates — banks have become stricter in their risk assessment.

Construction performance insurance — protection against storms, theft and faulty work

The construction work insurance is the all-risk insurance for house building and complements the fire and shell construction policy. It covers all damages that DO NOT result from fire:

• Storm and hail damage to the shell construction
• Flood, heavy rain, landslides (often as an elemental building component)
• Vandalism and burglary — theft of building materials is a mass phenomenon on construction sites
• Construction and material defects up to the acceptance
• Frost damage during winter construction
• Misconduct of construction helpers (damaged building components)

Typical damage examples from practice

A storm tears off the newly roofed roof: 30,000 to 80,000 euros. Thieves steal copper pipes and heating technology from the shell construction: 10,000 to 25,000 euros. Heavy rain floods the floor slab before the shell is closed: 15,000 to 50,000 euros in drying and renovation costs. The annual premium is between 200 and 600 euros — a fraction of a single damage incident.

Construction helper accident insurance – Attention: BG BAU is mandatory!

Here lies the biggest mistake made by many homeowners: Anyone who uses friends, family, or acquaintances for interior renovations is legally obliged to register all construction helpers with the German Social Accident Insurance for the Construction Industry (BG BAU) within one week. Anyone who forgets to do this risks fines of up to 2,500 euros — and in the event of damage, significant liability.

BG BAU vs. private helper’s accident insurance

• BG BAU (Mandatory): Premium of around 1.80 euros per helper hour, at least about 100 euros per helper and year. Covers medical treatment, rehabilitation, and pension in case of permanent disability — BUT only the statutory minimum benefits.
• Private helper’s accident insurance (Supplement): Covers pain compensation, disability sums, death benefit, and daily allowance. Premium from about 80 euros per helper.

Which helpers must be registered?

Even unpaid helping relatives and friends must be reported — exception: spouses and registered life partners. Anyone who builds without registration and a helper gets seriously injured is personally liable as the builder for medical treatment and pension costs in the range of six to seven digits. Anyone who wants to buy their first property and uses helpers should complete the BG-BAU registration on the very first day.

Liability insurance for plots – mandatory from the transfer of ownership

Before construction can begin, the right plot must first be found, financed, and registered in the land register. Anyone who knows the specifics of selling a plot knows: With the land register entry, your duties as an owner begin — even if the plot remains vacant for months.

Safety obligations on unbuilt plots

• Winter service: Clearing and salting of adjacent sidewalks
• Tree inspection: Remove rotten branches and sick trees
• Fencing: For excavation sites, pits or hazardous areas
• Traffic safety: Lying construction debris, open shafts

If someone gets injured on your plot, you are liable. In case of a construction delay of several months or construction during winter, liability insurance for the plot is mandatory at 30 to 80 euros per year. Tip: Often it is already included in the builder’s liability insurance from the start of construction — check before finalizing, otherwise you might end up paying double.

Elemental damage protection – the growing risk

Floods, heavy rain and backflow have become one of the most expensive construction and housing risks in recent years. Standard policies often exclude elemental damage. Homebuilders should definitely check:

• Is the plot located in ZÜRS zone 3 or 4 (high flood risk)?
• Does the construction and later building insurance offer an elemental damage component?
• How high is the deductible in the elemental case (often 10 % of the damage, at least 500 €)?

The surcharge varies depending on the risk zone between 50 and 400 euros per year — a single water damage incident can quickly cost 50,000 euros and more.

Checklist: Insurances before, during, and after construction

Before the first spade is dug (mandatory)

• Builder’s liability insurance concluded (min. 5 million €)
• Fire raw construction insurance active (bank requirement)
• Construction work insurance with elemental protection
• Land liability insurance (if not included in builder’s liability insurance)
• Construction helpers registered with BG BAU (within 1 week!)

During the construction phase

• Update construction helper accident insurance with new helpers
• In case of construction delay: extend insurance periods
• In case of self-performance: check additional insurance coverage

After completion

• Transition from fire raw construction → building insurance
• Conclude household insurance
• End builder’s liability insurance, check private liability insurance
• When renting out: Real estate as an Investment — consider landlord legal protection

Compare insurance – what really matters

Even though insurance coverage may look similar, premiums and clauses can differ significantly in the fine print. Anyone who wants to save hundreds of euros when Buy real estate or building should check the following comparison criteria:

• Sum insured: check not only the standard option, but also the maximum option
• Deductibles: 0 €, 250 €, 500 € — affects the premium by 15–30 %
• Gross negligence: is it covered or excluded?
• Combination discounts: builder’s liability insurance + construction work from the same provider often saves 10–20 %
• Provider type: direct insurers are often cheaper, while independent real estate agents offer individual clause optimization

Insurance costs should be planned for from the beginning — alongside <a href="https://lukinski.

Advantages of supplementary health insurance at a glance

Do not pay amounts above the subsidy of your health insurance out of your own pocket in the future. With the benefits of supplementary health insurance, you save money and make an important contribution to your health. Before you book an additional tariff, you should inform yourself about the options in the area of supplementary health insurance and find the offer that suits you. Supplementary cover is available for dentures and dental treatment, for spa stays and rehabilitation, for visual aids and alternative treatment by a non-medical practitioner. Do you want to have free choice of doctor and room occupancy in hospital? Then we recommend supplementary health insurance that gives you this freedom.

Insurances for freelancers and self-employed

Freelancers and self-employed persons do not necessarily have to obtain the daily sickness allowance via their regular health insurance with a noticeable increase in tariffs. Here, too, supplementary health insurance can help and provide cover in the event of prolonged loss of earnings due to an impairment of health. Since the premium amount for supplementary health insurance depends on both age and health, it is worthwhile to decide early on the desired coverage outside of health insurance. Above all, it is important that you make a decision based on your needs. If you do not wear glasses, for example, a supplementary insurance to cover the costs of visual aids is unnecessary. It is different with dentures and with desired special treatments in the hospital or alternative medicine. Here, supplementary health insurance makes sense for everyone, as these benefits offer general advantages and more decision-making power in the event of an insurance claim.

Supplementary health insurance possible despite previous illness?

Are you interested in supplementary health insurance but already have a pre-existing condition? We recommend that you openly communicate your health basis and rule out the possibility of being denied benefits in the event of an insurance claim because you were not honest about existing pre-existing conditions. We would be happy to support you in finding a favourable supplementary health insurance despite a pre-existing condition and to assist you as an experienced partner in comparing tariffs and benefits.

Further important information on the subject of insurance

In the insurance industry, a distinction is made between compulsory, necessary and recommended insurance. Health insurance, like long-term care insurance, is one of the contracts that every German citizen is required to take out by law. If you finance a house, further insurances can be added, by which the bank and you are secured.

Statutory health insurance as a self-employed person and freelancer

As a worker and employee, you are automatically a member of a statutory health insurance fund. The registration and payment of the monthly premiums is done by your employer. But also in self-employment or freelance work you can register in a statutory health insurance and benefit as a voluntary member of the benefits of health insurance. Since there are different statutory health insurance companies, a comparison can also be worthwhile in this case and serve as a basis for you not to necessarily remain in the health insurance chosen by your employer or your local health insurance. In general, the statutory health insurance funds do very well even with voluntary membership.

• Find out more about statutory health insurance here.

Private health insurance – advice on benefits and services

It is well known that as a private patient you enjoy a number of advantages, such as not being put on hold for specialist appointments. The privileges of private health insurance pay off, as long as you choose your insurance coverage wisely and based on your needs. Self-employed, freelancers, private individuals and anyone who is not covered by health insurance through their employer or a social agency can opt for private health insurance and benefit from the rate comparison. Generally, you have from a certain gross income per year to choose between statutory health insurance or private health insurance.

• Learn more about private health insurance here.

Health – Advice on insurance

Since 2009, there is a mandatory health and long-term care insurance in Germany prescribed by law. Exceptions are excluded, so that you must also have health insurance as a self-employed person, freelancer and low-income earner. If you are employed subject to compulsory insurance, you are automatically covered by health insurance through your employer and do not have to take care of your basic health protection on your own. The situation is different if you do not have a job that is subject to compulsory insurance and in this case you have to take care of your health insurance yourself.

• Learn more about health here.

Is the statutory health insurance worth it?

This question cannot be answered in a blanket manner. If you earn a high income from self-employment or freelance work, the monthly premium can be quite cost-intensive due to its dependence on income. Before you register as a voluntary member of a statutory health insurance, you should necessarily compare and check how high the premium is in your case and whether you are not covered more favorably in a private health insurance.

In the comparison, also consider that the private insurers include an annual premium increase and that it can become expensive with increasing age. A simple switch from the private health insurance back to the statutory health insurance is not so easy. For this reason, you should carefully consider whether you can pay the premiums of private health insurance in the future from your income, or whether it comes to problems with income losses. In the case of statutory health insurance companies, you cannot choose between different tariffs, but as a voluntary member you benefit from the advantage of paying a lower premium if you have a lower income.

Compare GKV and PKV: Save premiums and get the best benefits!

In the past, it was common for self-employed persons and freelancers not to register with statutory health insurance funds. There is no obligation to do so, as you can choose between private health insurance and the benefits of statutory health insurance.

To make the right decision, the focus should be on the benefits. Low premiums offer financial advantages, but are not sufficient for comprehensive health protection in the event of an insurance claim. You will make the best decision if you focus on the benefits as well as on your personal insurance premium and choose your health insurance partner carefully. If the benefits of the statutory health insurance are not sufficient for you due to ever more restrictions, it is recommended that you take out supplementary health insurance to extend the benefits and tailor them to your individual needs.

Further important information on the subject of insurance

In the insurance industry, a distinction is made between compulsory, necessary and recommended insurance. Health insurance, like long-term care insurance, is one of the contracts that every German citizen is required to take out by law. If you finance a house, further insurances can be added, by which the bank and you are secured.

Supplementary health insurance – for whom is it worthwhile?

The benefits provided by statutory and private health insurance are continually decreasing. Some desired benefits, such as the single bed room and treatment by a chief physician in hospital, are not included in the standard tariff of a health insurance. Likewise, in the case of dental prostheses with implants, you have to pay for all services outside the cost coverage of the health insurance companies out of your own pocket and therefore have to reckon with high additional costs. With supplementary health insurance, you compensate for your own financial expenses and have the option of adapting your health insurance to your claim and your individual needs.

• Find out more about supplementary health insurance here.

Private health insurance – advice on benefits and services

It is well known that as a private patient you enjoy a number of advantages, such as not being put on hold for specialist appointments. The privileges of private health insurance pay off, as long as you choose your insurance coverage wisely and based on your needs. Self-employed, freelancers, private individuals and anyone who is not covered by health insurance through their employer or a social agency can opt for private health insurance and benefit from the rate comparison. Generally, you have from a certain gross income per year to choose between statutory health insurance or private health insurance.

• Learn more about private health insurance here.

Health – Advice on insurance

Since 2009, there is a mandatory health and long-term care insurance in Germany prescribed by law. Exceptions are excluded, so that you must also have health insurance as a self-employed person, freelancer and low-income earner. If you are employed subject to compulsory insurance, you are automatically covered by health insurance through your employer and do not have to take care of your basic health protection on your own. The situation is different if you do not have a job that is subject to compulsory insurance and in this case you have to take care of your health insurance yourself.

• Learn more about health here.

Benefits and services in private health insurance

While the statutory health insurance companies offer standard benefits, you have a whole range of advantages as a private patient. When taking out private health insurance, you can not only choose between different providers, but also between different tariffs. The amount of the premium depends on your profession and age, your state of health when you take out the insurance and the benefits you want. Even as a privately insured person, you can choose a basic tariff for private health insurance, which corresponds in its portfolio of benefits to the tariff of the statutory health insurance funds and is considered the cheapest tariff. We only recommend the basic cover in extreme emergencies, for example if you temporarily have less income and for this reason have to save on health insurance for a short period of time.

Private tariff: Date hedging

With a private tariff, you secure prompt appointments with a specialist, can individualise the level of cost coverage and, for example, choose chief physician treatment and a single room for hospital stays directly in the insurance contract. You can also choose 100 percent cost coverage for dental prostheses, so that you do not need supplementary health insurance and can receive all the benefits you want directly through your private health insurance.

Further important information on the subject of insurance

In the insurance industry, a distinction is made between compulsory, necessary and recommended insurance. Health insurance, like long-term care insurance, is one of the contracts that every German citizen is required to take out by law. If you finance a house, further insurances can be added, by which the bank and you are secured.

Supplementary health insurance – for whom is it worthwhile?

The benefits provided by statutory and private health insurance are continually decreasing. Some desired benefits, such as the single bed room and treatment by a chief physician in hospital, are not included in the standard tariff of a health insurance. Likewise, in the case of dental prostheses with implants, you have to pay for all services outside the cost coverage of the health insurance companies out of your own pocket and therefore have to reckon with high additional costs. With supplementary health insurance, you compensate for your own financial expenses and have the option of adapting your health insurance to your claim and your individual needs.

• Find out more about supplementary health insurance here.

Statutory health insurance as a self-employed person and freelancer

As a worker and employee, you are automatically a member of a statutory health insurance fund. The registration and payment of the monthly premiums is done by your employer. But also in self-employment or freelance work you can register in a statutory health insurance and benefit as a voluntary member of the benefits of health insurance. Since there are different statutory health insurance companies, a comparison can also be worthwhile in this case and serve as a basis for you not to necessarily remain in the health insurance chosen by your employer or your local health insurance. In general, the statutory health insurance funds do very well even with voluntary membership.

• Find out more about statutory health insurance here.

Health – Advice on insurance

Since 2009, there is a mandatory health and long-term care insurance in Germany prescribed by law. Exceptions are excluded, so that you must also have health insurance as a self-employed person, freelancer and low-income earner. If you are employed subject to compulsory insurance, you are automatically covered by health insurance through your employer and do not have to take care of your basic health protection on your own. The situation is different if you do not have a job that is subject to compulsory insurance and in this case you have to take care of your health insurance yourself.

• Learn more about health here.