Liability insurance for real estate: when is it mandatory?

As the owner of real estate, you not only bear responsibility for the maintenance of your building, but also for possible damage that your real estate can cause to third parties. This can be a loose roof tile that falls on a passerby , a smooth entrance where someone slides or even fire damage to a neighboring building .

A liability insurance for real estate protects you against financial claims that can arise from this. But when is this insurance compulsory and when is it smart to insure you extra? We explain it in this blog.

1. What is a liability insurance for real estate?

insurance for real estate covers damage to persons or goods caused by your building or site. Think of:

✅ Damage to third parties - for example if someone stumbles over a loose tile on your site.
✅ Personal injury - For example, if a loose part of your building falls on a passer -by.
✅ Damage to other buildings - think of fire damage that is spreading to an adjacent building.

Important: A standard private liability insurance (AVP) not cover this damage when it comes to real estate that you rent out or own . special insurance for real estate is often necessary.

2. When is liability insurance for real estate compulsory?

Liability insurance is not required by law , but in many situations it is necessary. Below the cases where insurance mandatory or highly recommended :

✔ Owner's obligation at Owners' Associations (VVE)

With an apartment or multi -company building, the VvE is often required to take out liability insurance This protects the joint owners against claims from third parties.

✔ Insurance obligation for mortgage

When taking out a mortgage on rented property, many banks demand home insurance with liability coverage . This prevents financial risks for the mortgage provider.

✔ Rental of homes or business premises

As a landlord you are responsible for damage due to overdue maintenance or dangerous situations in and around your building. A tenant can hold you liable if damage occurs.

✔ Business real estate & commercial buildings

Owes such as offices, shops or warehouses entail extra risks. A business home insurance covers damage to the building itself, but liability for damage to third parties must be insured separately.

✔ Construction and renovation projects

For renovations and renovations, local residents can suffer damage due to, for example, construction waste, collapse or vibrations. A CAR insurance (Construction All Risk) or a liability insurance is then necessary.

Do you want to know if your situation falls under these obligations? advice without obligation Finass insures .

3. When is liability insurance smart to have?

Even if insurance is not mandatory, it may be wise to protect you extra.

💰 Protection against high damage claims - a claim for damages can rise to tens of thousands of euros or more.
🏠 You have several buildings - the more real estate, the greater the risk of damage to third parties.
📍 Your building is empty - vacancy increases the risk of damage, for example due to vandalism or poor maintenance.
🔨 You perform regularly maintenance or renovations - this can entail risks for tenants and local residents.

Liability insurance is often customized . Do you want to know which coverage best suits your situation? Contact Finass insure for a customized quote.

4. What does liability insurance for real estate cost?

The premium depends on:

📌 The type of real estate - home, shop, office or industrial building.
📌 The location and use - is the building empty, is it in use or is it rented?
📌 The insured value - the greater the risk, the higher the premium.
📌 cover options - Do you only choose liability, or also cover for damage to tenants and local residents?

💡 Tip: premiums are often cheaper if you multiple buildings in one policy. Ask a customized offer at Finass insure and discover the best options for your situation.

5. Frequently asked questions about liability insurance for real estate

💬 Is a liability insurance required for a private house?
No, but damage caused by your home to third parties is sometimes co -insured through private liability insurance. A separate insurance is required for rented or business real estate.

💬 Is a VvE obliged to take out liability insurance?
Yes, in most cases a VvE is required to have liability insurance for damage caused by common parts of the building.

💬 Is my liability insurance valid for vacancy?
Not always. Some insurers limit or stop the coverage in the event of long -term vacancy. It is important to check this with your insurer.

💬 Does liability insurance also cover damage by tenants?
No, damage that tenants cause is not covered by your liability insurance. This may require landlord insurance or home insurance

💬 How much does liability insurance for real estate cost?
The costs vary depending on the value and use of the building. The average premium is between € 100 and € 1,000 per year , depending on the coverage.

6. How do you take out liability insurance for real estate?

Do you want to optimally protect your real estate against financial risks? Follow these steps:

1️⃣ Analyze your risks - look at the type of real estate and use.
2️⃣ Compare coverings - Choose insurance that matches your situation.
3️⃣ Request a quote from Finass insures - our experts help you with a customized policy.
4️⃣ Take out the insurance and protect your real estate!

Conclusion: Is liability insurance for real estate required?

Liability insurance is not always required by law , but in many cases indispensable . Especially for landlords, VvEs, companies and real estate investors, it is essential to cover financial risks.

💡 Do you want to know which insurance you need? Request a quote from Finass obligation and ensure that you are well protected against unexpected damage claims! 🚀