Builder's legal protection insurance - Signing the construction contract

Good day everyone,

since we plan to sign our construction contract in a few weeks, we spoke with "acquaintances" who have been building for 2 years now and are still not finished due to various disputes with the general contractor.

According to the acquaintances: "The new build was/is a total nightmare for us, we should have better taken out a builder’s legal protection insurance right away."

I have informed myself about this and found out that, due to the high risk premium and sometimes high deductibles, this is NOT included in ANY standard legal protection insurance package. Therefore, it would have to be taken out separately. I have learned that ARAG as well as ÖRAG offer such coverage... Apparently, only very few insurers on the market provide this service.

Does anyone have experience with this? Does it make sense? What does something like this cost? I am currently still waiting for an answer from the aforementioned insurers.

In this context, feel free to also briefly address other insurance policies – is there anything to consider here? Which insurances are DEFINITELY to be taken out? My insurance advisor said that there is a lot of junk on the market here too and not everything is insured that one thinks is insured, especially in the area of own labor.

Both, as far as I know, only do it in connection with another insurance or financing from their association.
When I researched back then, ARAG had a ridiculous maximum amount per legal case.

I have now taken out ÖRAG together with fire raw construction/building, construction performance, and builder’s insurance.
100,000 EUR per legal case and 400 EUR deductible, which is reduced if you use a lawyer recommended by them.

I hope I won’t need it, but you never know...

Both, as far as I know, only do it in connection with another insurance or financing from their association. ARAG had, when I researched at the time, a ridiculous maximum amount per legal case. I have now taken out ÖRAG together with fire raw construction/building, construction performance, and builder's insurance. 100,000 EUR per legal case and 400 EUR deductible, which is reduced if you use one of their recommended lawyers. I hope I won't need it, but you never know...

The builder's insurance is the builder's liability insurance, right? How high is the contribution for the legal protection alone approximately? How short-term can the insurance be taken out? From when do the insurances generally take effect, or how long is the waiting period?

Hello,
we also have a [Bauherrenrechtschutzversicherung]. We took this out with the financing from the Sparkasse. We are with ÖRAG. The premium for us is based on the construction sum. So far, we have only used telephone advice. We are very glad to have taken out this insurance. There was no waiting time, the contract had to be completed before the first groundbreaking.

Best regards

Yes, Bauherrenversicherung should be called Bauherrenhaftpflicht. Yes, although Spatenstich also means demolition. So the contract must be concluded, but construction must not have started yet. There is no waiting period. And yes, the premium is based on the construction sum (for me 0.12% / year).

But you only get the insurance if you complete the financing at the Sparkasse, or has something changed about that?