Hammer, chisel, happy ending: Insurance tips for DIY enthusiasts

In spring, many DIYers can’t wait to get started. How about a new garden shed or a larger patio? ERGO experts Janna Poll and Manuel Tatura explain what’s important from an insurance point of view.

The most important basic cover: personal liability insurance

Personal liability insurance is practically essential for building and renovation work. It steps in if other people suffer damage or injury – for example, if friends trip over loose paving slabs and hurt themselves. “At ERGO, smaller building, renovation or demolition projects are covered under personal liability insurance up to a construction sum of 100,000 euros,” says Janna Poll.
Tip: check with your insurer before you start the project to find out exactly what is included.

When a building owner’s liability policy is needed

Larger projects or work involving structural changes may be excluded from personal liability insurance. In that case, you need additional building owner’s liability insurance. “This kicks in if, for example, heavy components topple over and damage the neighbouring property,” Poll explains.

Residential building insurance: protection for the house and fixed structures

Buildings insurance covers the house itself and fixtures that are permanently attached to it, such as the roof, walls, firmly anchored patio structures or a permanently installed garden shed. “It provides cover for damage caused by fire, escape of water, storm or hail,” says Poll. “It’s advisable to take out additional natural hazards cover, otherwise damage caused by flooding, landslides or heavy rainfall is not insured.” Anyone planning major extensions or alterations to the building or garden should inform their insurer in advance so that the cover can be adjusted. Whether garden sheds and outbuildings are automatically included, or have to be insured separately, depends on the insurer as well as on the size and construction of the building.

Personal accident insurance: protecting yourself

Statutory accident insurance generally does not apply to private building and renovation work on your own home or in your own garden. It mainly covers occupational and commuting accidents in an employment context. If you fall or hurt yourself while doing DIY, you are usually only covered by your health insurance. Important to know: health insurance only pays for medical treatment, not for the financial consequences of any longterm disability. “Personal accident insurance can therefore be a sensible option: it pays a lump sum or pension in the event of disability and often includes additional benefits for rehabilitation or necessary alterations to your home,” says ERGO accident insurance expert Manuel Tatura. “Depending on the tariff, it provides worldwide cover around the clock – including when you’re doing DIY.”

Protecting helpers: friends, family & BG BAU

If you ask friends or family members to lend a hand, you should also think about their protection. Your own personal liability or building owner’s liability insurance should cover the building work and any damage to third parties. At the same time, helpers are well advised to have personal liability insurance that includes so called “favour” or “goodwill” damage (damage caused while helping someone out). “A personal accident or construction helper accident policy provides cover in the event of more serious accidents,” says Tatura. If you’re using several helpers over several days, you should check with BG BAU (the German Social Accident Insurance Institution for the building trade) whether and how private helpers fall under statutory accident cover there.

Checklist at a glance: what to clarify before you start

1. Check personal liability insurance:
   Are building and renovation projects covered?
   Up to what construction sum?
2. For larger projects:
   Clarify whether you need building owner’s liability insurance.
   If necessary, check whether construction all-risks insurance is advisable.
3. Inform your residential building insurer:
   Briefly describe the project, e.g. patio refurbishment or new garden shed.
   Ask whether adjustments are needed and whether the garden shed can be insured as an outbuilding.
4. Your own protection:
   Check whether you have personal accident insurance and whether the benefits are sufficient.
5. Planning for helpers:
   Clarify building owner’s or personal liability insurance and accident cover for helpers – and, if applicable, with BG BAU.