Buildings insurance in Germany: what it covers and what matters

The building and its permanently attached parts are insured against the agreed perils. Location, type of construction, use and previous damage affect cover and acceptance.

In short: Buildings insurance (Wohngebäudeversicherung) pays for repairing or rebuilding your house after fire, burst pipes, storm and hail. It is not compulsory by law, but essential for owners – banks usually require it for a mortgage. Flooding and heavy rain are only covered with the natural hazards module.

What is covered

Peril	Typical damage	In basic cover?
Fire	Fire, lightning, explosion	Yes
Burst pipes	Pipe bursts, frost damage to pipes, escaping water	Yes
Storm and hail	Roof blown off, fallen tree (storm usually from wind force 8)	Yes
Natural hazards	Flooding, heavy rain, backflow, landslide, snow load	No – only with an add-on

The building is insured with everything that is permanently installed – such as heating, plumbing, windows and a built-in kitchen. Furniture and other movable items belong in contents insurance. Outbuildings, garages and solar panels are not automatically included in every policy.

The right sum insured: sliding new value

Most policies insure the house at sliding new value (gleitender Neuwert). It is based on the so-called 1914 value (Wert 1914) – the notional construction cost of your house in 1914. Every year it is multiplied by a factor that reflects the development of construction prices. This way the sum insured automatically keeps pace with building costs and you are not underinsured even years later.

Alternatively, many insurers calculate the sum using a living-space model based on floor area, type of construction and fittings. In both cases, the details must be correct: an unreported loft conversion can lead to a reduced payout in the event of a claim.

Natural hazards where you live

Which natural hazard matters for your house depends on its location: storm surge on the coast, flooding along large rivers and heavy rain everywhere. The natural hazards module mainly covers flooding from heavy rain or rivers bursting their banks, as well as backflow. Storm surge is generally excluded under the usual natural hazard terms, even if the module is included. If you live on the coast or on a tidal river, check how your policy treats storm surge. On our regional pages (in German) we have summarised local hazards with sources, for example for Wesermarsch, Wilhelmshaven, Dresden on the Elbe, Cologne on the Rhine and Münster.

Planned new rules on natural hazard cover

There is currently no compulsory natural hazard insurance in Germany. According to the GDV (as of 28 September 2026), Federal Minister of Justice Stefanie Hubig has announced key points that are being coordinated between ministries; she has indicated a draft bill for the first quarter of 2027. The plan is that, for new policies, every buildings insurance offered must also cover natural hazards to a certain extent, existing customers can extend their policies and, instead of full compulsory insurance, an opt-out is being considered. Until a law is passed, natural hazard cover only applies if it is agreed in your policy. According to the GDV, around 59 per cent of residential buildings in Germany are insured against natural hazards.

Your obligations as an owner

• Prevent frost damage: Heat unused buildings during the cold season or drain the water pipes.
• Report changes: Extensions, loft conversions, solar panels or commercial use increase the value or the risk.
• Avoid gross negligence: If you leave an open flame unattended, for example, you risk a reduced payout (section 81 VVG) – good policies waive this.

Buying a house: the insurance transfers to you

When you buy a house, you automatically take over the seller's existing buildings insurance (section 95 VVG). You can cancel it within one month of being entered in the land register (section 96 VVG) and replace it with your own policy. More in our guide to buying property. Compare policies in the comparison.