Building or renovating property in Germany involves strict legal responsibilities. As the property owner (Bauherr), you are held personally liable under § 823 BGB for accidents or damages that occur on your construction site. Dedicated Builder's Liability Insurance protects you against severe financial risks.
Key Facts at a Glance
| What is covered | Damage your construction site causes to others, for example if someone falls or material drops, including defence against unjustified claims. |
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| What is not covered | Damage to your own new building, mistakes by the contractors you hire and projects above the agreed construction sum. Details |
| Who needs it | For all builders, including conversions or renovations, because as the client you bear the duty to keep the site safe. |
| What does it cost | Usually a one-off premium of around €100 to €250 for the entire construction period of a detached house. Non-binding guide value (as of 2026); your premium depends on your situation. You can calculate your exact premium in the comparison calculator on this page. |
| What to look out for | State the construction sum correctly, include your own work and helpers and agree on a sufficiently long construction period. |
The Hoffmann Family Incident: A Storm on the Construction Site
Fictional example for illustration; all persons and events are invented.
When the Hoffmann family started constructing their home in Rheine, a heavy autumn storm swept through the area overnight. A heavy beam detached from the unfinished roof truss and crashed onto a neighbor's parked car.
In addition, a pedestrian tripped in the dark near blown-over fence barriers and fell into an unlit excavation pit. Total claims for car replacement, emergency medical care, lost wages, and pain compensation exceeded €140,000.
Because German law holds property owners liable for construction site safety obligations (Verkehrssicherungspflicht under §§ 823, 836 BGB) even when delegating tasks, the family's Bauherrenhaftpflichtversicherung stepped in immediately, settled all valid claims, and defended against unjustified demands, allowing construction to continue safely.
Key Protection Features
- High Sum Insured: Full coverage for personal injury, property damage, and financial losses up to €50 million.
- Construction Site Risks: Protection against fallen scaffolding, unlit pits, or hazardous debris.
- Helper Coverage: Coverage for family members or friends assisting on site.
- Legal Defense: Rejection of unjustified claims against the builder.
- Soil & Property Protection: Coverage for soil subsidence or damage to neighboring structures.
What Is Not Covered
Builder's liability insurance protects you against third-party claims. It does not cover these points:
- Damage to the new building: Storm or fire damage to the shell is covered by builder's risk or shell fire insurance.
- Contractor mistakes: Damage caused by hired companies is covered by their own public liability insurance.
- Injured helpers: Private helpers must be registered with the construction employers' liability insurance association (BG BAU); builder's liability does not replace this.
- Construction sum too low: If the actual construction sum exceeds the agreed one, cover may be restricted.
How I Help You in the Event of a Claim
As your broker, I am legally on your side, not the insurer's, and that matters most when something happens. This is how we proceed:
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1. Report it quickly
Let me know as soon as possible, by WhatsApp, phone, email or directly in the simplr app. Many policy conditions require prompt notification.
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2. Document everything
Keep photos, invoices, reports and the names of everyone involved. Good documentation speeds up processing considerably. How to write the claim report.
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3. Secure the site
Secure the scene, document barriers and signs with photos and note witnesses. This proves that you fulfilled your duty of care.
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4. I take care of the rest
I submit the case to the insurer, follow up and check the settlement. If the insurer refuses or cuts benefits, we look at the reasons together. What to do after a denial.
Compare Rates Yourself
Use our comparison tool to calculate premiums and find the best rates for your situation. You can sign up directly online.
Tip: When comparing tariffs, make sure they include: damage from sewer backflow and domestic waste water, and the option to extend the construction period to 3 years; depending on your situation the use of construction machinery for your own work and your own planning or site management. I am happy to check the tariffs with you.
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