Created with Sketch.
Founder Christian Dürr

Isar Estate

Founder: Dipl.-Kfm. Christian Dürr

Do you have a request? We are happy to be there for you and look forward to hearing from you.

+49 (0) 89 901 697 46

    * Mandatory field

    Insurance for real estate - What you should know

    Insurance for real estate

    Buying a property brings joy. For families, it fulfils the dream of owning their own home, and investors make a stable investment that is not dependent on the stock market. However, the status as a property owner also comes with risks: Damage to the property usually involves a high financial outlay and can threaten one's existence in extreme cases. For this reason, it is important to consider suitable real estate insurance policies that provide sufficient protection against such damage as early as the purchase of the new property.

    In this article, you will learn what you should pay special attention to as an owner and which insurances for real estate are really necessary.

    Become clear about your insurance needs

    With property insurance, you want to get the good feeling of being perfectly covered. In order to find the right concept, the first step should be to gain clarity about your actual insurance needs. The latter depend not only on the circumstances of the property to be insured, but also strongly on your personal need for security.

    Therefore, it is not sufficient to assess the general condition or the building fabric of the property to determine the exact value. The location of the property plays an equally important role. There are locations and regions that harbour special risks due to topographical features, such as proximity to water or mountains. A house in a mountainous area therefore requires different property insurance than a city flat.

    How high the effective damage risk of your building is can be determined in various gradations from "low" to "very high". As a basis, consider the damage events of recent years using internet tools that help you assess regional risks. It is also advisable to consult an expert who makes an assessment of future developments in the respective area.

    Attention: As already mentioned, the choice of the appropriate property insurance depends on numerous individual factors. There are no blanket suggestions for insuring your home. It is therefore best to seek advice from an insurance specialist.

    As a basic package that you can build on together with your insurance advisor, residential buildings insurance, natural hazards insurance and household contents insurance are definitely suitable.


    We at Isar Estate would be happy to put you in touch with a trustworthy partner from our network. Just get in touch with us.

    Homeowners insurance for the protection of your building

    A fire or a storm can destroy your property in a matter of seconds. Of course, no one wants to imagine such a scenario - but you should still insure yourself against possible consequences. Homeowners insurance is one of the classics among insurances for real estate and is recommended to every owner. Although it is not compulsory, banks often require it in order to grant a loan. Residential building insurance also makes sense if you rent out flats: If damage is caused to your flat by the tenant, the costs are covered by the insurance depending on the individual case. Otherwise, the tenant's liability insurance takes effect.

    In the event of fire, lightning, explosion, mains water, storm and hail damage, residential buildings insurance offers you comprehensive protection for all parts of your property. This includes the roof, walls, built-in doors and windows, terraces, balconies and other permanently installed components such as kitchens, built-in furniture, permanently laid floors, a stair lift or sanitary installations including the heating system. However, the following are excluded from the insurance coverage of the residential building insurance:

    • Movable furniture or valuables
    • Parts of the building that a tenant has inserted himself/herself
    • other property components, such as fences or garden lanterns
    • Building accessories serving commercial purposes

    In addition, residential buildings insurance does not cover all natural damage. In order to be fully insured against natural forces, a natural hazards insurance is necessary.

    Good to know: As a homeowner, you must take out homeowners insurance on your own. If you are the owner of a flat in a block of flats, it is usually taken out by the relevant housing association or society.

    Additionally recommended: Natural hazard insurance

    Although buildings insurance provides you with comprehensive cover, in most cases you are not insured against natural hazards. However, natural disasters often result in the total loss of your building, which is why, as a homeowner, you should consider taking out natural hazard insurance.
    This property insurance covers damage caused by forces of nature such as floods, earthquakes, subsidence, landslides, snow pressure, avalanches and volcanic eruptions as a supplement to household contents or residential building insurance. As usual, damage caused intentionally or through gross negligence is not included in the insurance cover.

    Household contents insurance to protect your inventory

    Residential building insurance and insurance against natural hazards cover damage to the fabric of the building. If you also want to protect your inventory, it is worth taking out household contents insurance. This covers all your household effects against destruction, damage and loss. The term "household effects" covers all items that are used and furnished in the household. This also includes valuables such as:

    • Cash
    • Money cards
    • Documents such as securities or savings books
    • Jewellery and valuable collections (stamps, coins, etc.)
    • Works of art
    • Furs and
    • Antiques

    The range of benefits provided by household contents insurance includes, for example, damage caused by fire, direct lightning strikes or an explosion. Burglary, robbery and vandalism are also covered by household contents insurance. A distinction is made between burglary and simple theft: while simple theft involves the theft of items without violence, burglary or robbery involves the use of violence against property or persons. According to burglary statistics from the Federal Criminal Police Office, a burglary is attempted in Germany every seven minutes. Another good reason to opt for this insurance!
    Household contents insurance also covers water damage such as burst pipes or burst hoses as well as destruction caused by storms from wind force eight and hail damage. Damage caused by flooding, groundwater or heavy rain is not usually covered by the insurer. You should therefore take out the above-mentioned natural hazards insurance.

    The amount of the premium for your household insurance depends on several aspects, such as the sum insured, the place of residence and the insurance company. There are two different ways to determine the value of the household contents to be insured:


    Concrete determination of the value of your household effects, in which an exact value of your household effects is determined and insured. The sum insured is directly related to the current value of the property.


    Flat-rate insurance of household contents, insuring your furnishings at a flat rate of approximately 500 to 750 euros per square metre of living space.

    Conclusion: As a homeowner, deal with the topic of insurance.

    Whether residential building insurance, natural hazards insurance or household contents insurance: As a homeowner, you should look into the most common property insurance policies. Optimal protection against damage is only guaranteed if you consider all the individual factors that make up your property's insurance needs.

    Through our comprehensive network, we at Isar Estate also support you in insurance matters relating to your property.

    Founder Christian Dürr

    Do you have questions about real estate insurance? Let an experienced real estate agent from Munich advise you.

    Feel free to contact us!


    +49 (0) 89 901 697 46


    Despite careful research and checking of the sources, the author assumes no liability for the accuracy and completeness of the information presented. In case of unclear legal and tax questions, it is advisable to consult a lawyer and/or tax advisor for clarification.

    Author: Dipl.-Kfm. Christian Dürr

    Photo credit: istockphoto, 1171927001, AndreyPopov