Which insurance after property acquisition?

2018-06-15 09:59:52

Hello,

We will notarize the purchase contract for our property at the end of June. Am I liable for any damages from that day, or only after I receive the letter from the notary weeks later and am asked to make the payment? (After cross-checking various things) The entry in the land register will probably happen quite late anyway..

We want to start building early next year, meaning we will be finished in at most 2 years.

Which insurances do we need immediately? Home and property owner liability? Builder's liability? Construction all-risk insurance?

I don't necessarily want to insure one and the same thing twice..

Has anyone had experience whether banks where the loans are taken out generally offer good conditions for various insurances related to the house, property, and term life insurance..?

The comparison is really tedious and hardly transparent on the internet..

Is it a problem if our property is freely accessible without a fence / wall etc..?

2018-06-15 14:44:14

You are responsible for the property as soon as the risk passes, i.e. as soon as you are the possessor (not necessarily the owner). Often this is the time of full payment. Details are in your contract.

A property owner liability insurance makes sense if someone gets injured on/through your property, if salting obligations are neglected, etc. It is often included in personal liability insurance, so check your policy. Insuring this separately doesn’t make sense; I would rather change the personal liability insurance if it is currently not included.

Bank and insurance are two different things and I wouldn’t even want to give them an incentive to link anything. I actually find the insurance topic around the house manageable; it is not much different from being a tenant if you exclude the construction phase.

We already covered property owner liability insurance; for that, your lender will want a residential building insurance. You will want it too ;-) possibly supplemented by natural hazard coverage. You take this out before construction begins; until moving in it costs nothing, but the shell is insured against fire (if included, which is common. Keyword: fire shell insurance). Cost is around 250-500€ per year.
Then a builder’s liability insurance makes sense. It is also included in very good personal liability insurances, but you have to look more closely; often it is only intended for renovations or limited by construction sums, e.g. for renovations up to 100,000€. Here too, switching to a better product or separately taking out builder’s liability insurance for the construction phase helps. Costs around 80€.

That was already the “must.”
The biggest “optional” for the construction phase would be the construction all-risk insurance, which protects against damages during the construction phase.

Household insurance is no different than in a rental apartment. You can do it; most Germans probably don’t have one as far as I know. Some banks require term life insurance, but that is more about personal needs and less about external compulsion.

2018-06-15 14:54:48

You are responsible for the property as soon as the risk passes, i.e. as soon as you are the possessor (not necessarily the owner). Often, this is the point of full payment. Details are in your contract.

A homeowner's liability insurance makes sense if someone gets injured on/through your property, if de-icing obligations are neglected, etc. It is often included in private liability insurance, check your policy. Insuring this separately doesn’t make sense; I would rather change the private liability insurance if it is not currently included.

Bank and insurance are two different things, and I wouldn’t even create the incentive to want to link them. I actually find the insurance topic around the house manageable; it’s not much different from being a tenant, if you exclude the construction phase itself.

We already talked about homeowner’s liability insurance; your lender will want residential building insurance. You will want this too ;-) possibly extended with natural hazard coverage. You take this out before construction starts, it costs nothing until move-in, but the shell construction is insured against fire (provided you include that, which is common. Keyword: fire shell construction insurance). Cost is about 250-500€ per year.
Then a builder’s liability insurance makes sense. This is included in very good private liability insurance, but you have to look more closely; often it’s only intended for renovations or limited by construction sums, e.g. for renovations up to 100,000€. Here too, switching can help you get a better product or separately taking out builder’s liability insurance for the construction phase. Costs about 80€.

That was the "must".
The biggest "can" for the construction phase would be construction all-risk insurance, which protects against damages during the construction phase.

Household insurance is no different than in a rental apartment. You can get it; most Germans probably don’t have it, as far as I know. Some banks require term life insurance, but that is more about personal need than external pressure.

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Which insurance after property acquisition?

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Alex85

Kabelmodem87