Storm damage, material defects in the building material or even vandalism can cost you dearly as a builder. In addition to the actual damage, the construction delay that occurs is often associated with high costs. In order to protect ourselves against this, it is worthwhile to take out construction work insurance. You can find out what costs you can expect for this insurance from the cost check expert in our interview.
Question: How expensive is a building performance insurance for the construction of a single-family house??
Kostencheck-Experte: That depends in detail of course always on the included services, the scope of the construction project and some other factors.
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In general, however, builder’s liability insurance is not too expensive. They are paid, as well as the still much more important builder’s liability insurance with a single premium.
The costs for the one-time payment range – depending on construction costs, personal contribution and type of construction – between about 170 EUR and 450 EUR for a term of 12 months. Longer or shorter terms can then make the premiums more expensive or cheaper accordingly.
Under special conditions (z. B. very high own work with construction machines, building under monument protection, etc.) the insurance premium may be higher if necessary.
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In some cases, a builder’s liability insurance is already included in the tariff, so it does not need to be paid for separately. This should always be taken into account when comparing premiums.
Cost example from practice
We want to take out a construction performance insurance for our single-family house construction (solid prefabricated house). The pure building costs (without land and development costs) amount to net 257.000 EUR, we want to take out the insurance for one year. We will make our own contributions to the construction of 30.000 EUR. Our house will be built with a living area of 165 m².
| Offer 1 | deductible 250 EUR, benefit sum BH-liability 5 MIo | 249,90 EUR |
| Offer 2 | Deductible 150 EUR, BH liability sum insured 3 million | 297,50 EUR |
| Offer 3 | deductible 250 EUR, benefit sum BH liability 15 Mio | 357 EUR |
The premiums shown here refer to specific concrete insurance conditions and individual costs, personal contributions and contract durations. The premiums in other cases can also differ significantly.
Question: what determines the cost of construction liability insurance
Kostencheck-Experte: Decisive for the premium calculation are:
- the construction sum (net construction costs without development and land costs)
- the extent of own work during construction and the extent of own work with construction machinery (each quantified as a cost share of the construction costs)
- the length of the term (construction period) between 3 months and a maximum of 2 years
- the type of building
- The construction method (solid house, prefabricated house, type of roofing, etc.) is important.)
- whether the house is a listed building
- the location of the construction project
- the included benefits (z. B. simultaneously included builder’s liability insurance)
- the desired amount of coverage
- the amount of the agreed deductible
- the cost calculation of the respective insurer
- individually granted bonuses or discounts
If several insurance policies are taken out with the same insurer, even higher discounts may be available under certain circumstances. A comparison of the conditions and premiums is worthwhile in any case. In doing so, however, you should compare in great detail and also pay attention to the respective conditions and benefit exclusions with the individual insurers.
Question: Is a building performance insurance with the building prescribed?
Kostencheck-Experte: This is only the case in a few cases, such as when the lender requires proof of existing insurance as a condition.
But the insurance is advisable in any case. Especially on construction sites, it is often not so easy to determine who is actually responsible for the damage and who has to pay for its repair. This can be the subject of long-lasting disputes, which in turn can become very expensive.
With an existing insurance, this expense is spared – any damage that has occurred is covered by the insurance and work can continue immediately. The clarification of a question of fault and the amount of compensation from each party is then not always mandatory.