Residential building insurance / financing / property developer

Hello everyone,

We purchased a terraced house from the developer in the summer, and the house is currently still in shell construction.

Today I leisurely reviewed all the bank documents again and got stuck on the clause "conclude building insurance before disbursement."

Since we are building with a developer, I originally assumed that we only need to take out insurance after the handover since the insurance is arranged through the developer, who is still the owner, but the more I think about it, the more confused I become, especially the statement "before disbursement" confuses me. The notary contract provides for installment payments, so money has already been paid.

How did it go for you or how should I understand this?

Thank you in advance.

Then just take out a residential building insurance. Start date mid-2021 or upon handover. It's nothing special. The clause from the bank is usually intended for finished properties.

finish one and that's it

Until the handover, the building insurance runs through the developer, at least in our case. It’s best to call the developer and ask. Only after the handover can you either take over the insurance or cancel and switch it without any problems.

It usually does not cost any contribution during the construction phase anyway, so taking it out now for later should be bearable.

At our place, the property was insured by the developer at that time. This transferred to us upon takeover and we had a special right of cancellation