Buying a property: the cover passes to you

If you buy a house, any existing buildings insurance (Wohngebäudeversicherung) automatically passes to you when ownership transfers. You do not have to keep it – but you do have to act within a deadline, otherwise it stays in place.

The contract passes to you automatically

Under § 95 VVG, the buyer of an insured item takes over the rights and obligations of the previous policyholder. For a property, this means the seller’s buildings insurance continues with you as the policyholder, without you signing anything. What counts is the transfer of ownership, that is, the entry in the land register, not the notary appointment or the handover of keys. Months can pass between handover or the transfer of risk and the entry, and during that time it may be unclear who bears which damage and whose policy applies. Clarify this phase with the seller and the insurer in advance, for example through a clause in the purchase contract. The transfer also means you inherit a contract that someone else negotiated.

The deadline that is easily overlooked

Under § 96(2) VVG, you can cancel the transferred contract – with immediate effect or at the end of the current insurance period. The right expires one month after the acquisition, that is, after the entry in the land register; if you did not know the policy existed, the month only starts once you find out. The insurer may also cancel, giving one month’s notice, within one month of learning of the sale. If you let the month pass, the contract continues on its existing terms. So check straight after ownership passes to you whether the sum insured, the risks covered and the excess suit you – in particular, whether natural hazards are included.

• One month from the acquisition (land register entry)
• With immediate effect or at the end of the insurance period
• The insurer can cancel too
• Without cancellation, the contract continues unchanged

What is covered on the building – and what is not

Buildings insurance covers the building itself, including its fixed parts. Everything movable inside remains a matter for household contents insurance (Hausrat). Having both contracts side by side is normal for owner-occupied property and not double cover. Natural hazards such as flooding, heavy rain, sewage backflow or landslides are generally only covered for the building as an add-on as well. Whether it is offered and what it costs depends on the risk level at your address.

• Building and fixed parts
• Contents covered separately for movable items
• Natural hazards as an add-on
• Construction all-risks and builder’s liability for new builds