Building insurance duty

There are many myths and rumors about homeowners insurance in Germany. But which are true and which one can confidently banish into the drawer of legends? For example, what is the requirement for compulsory insurance in the field of homeowners insurance? Is it true that owning such insurance is compulsory for the owner of a home? Or is that not true and it is more the case that the banks can oblige the homeowner to take out homeowners insurance? How is it exactly? We clarify!

No compulsory insurance in Germany

Well, in principle, it is first and foremost that there is no more homeownership insurance in Germany. Already in 1994, the insurance obligation for a fire insurance, which had been valid until then, was canceled without substitution. Every homeowner must now know for himself whether he wants to protect his property against all sorts of dangers or not. Of course, almost all homeowners decide to take out home insurance. Only with a good residential building insurance tailored to the home can you effectively protect yourself from the great risk of a financial disaster in connection with the possible loss of your home.

Banks make homeowners insurance mandatory

Even if there is no longer any legal basis for homeowners insurance, who finances a property, must necessarily complete such insurance. As the banks use the property as real collateral for the loan, they naturally place increased value on ensuring that the property is sufficiently protected. Should something happen to the house and the owner be insolvent and there would be no homeowners insurance.... unthinkable!

The requirements of the banks extend in most cases to the so-called fire insurance. However, a modern homeowners insurance is concluded as an all-risk cover against the dangers fire, power water, storm and hail. In addition, of course, the insurance of "other natural hazards" is possible. These would be e.g. Floods, backwater, earthquakes, avalanches and snow pressure.
In order to quickly and easily find the cheapest and most effective tariffs for homeowners insurance, it is advisable to use an Internet homeowners insurance tariff comparison for his research. Such a tariff check compares quickly and simply dozens of tariffs and searches out the most attractive offers.

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