Advising house buyers: keep or replace the building policy?

A house buyer asks for cheaper residential building insurance. That gives your brokerage a valuable advisory task: show them which policy belongs to the property they are buying and how a proposed change fits into the purchase. Start with the existing cover and the stage the transaction has reached. An attractive quotation becomes ready for a decision once everyone understands what it would replace and when that replacement can sensibly take effect.

Turn the purchase into understandable milestones

First establish whether the purchase is being prepared, the deed has been signed or ownership has already been registered. The purchase agreement, handing over the keys and transferring ownership describe different events. A contractual transfer of land generally requires agreement and registration in the land register; the formal conveyance agreement is the agreement used for that purpose. The foundations appear in section 873 BGB and section 925 BGB. Establish the actual ownership position from the relevant documents and involve the responsible notary if anything is unclear.

For your conversation, begin by separating confirmed dates from planned dates and identifying the event attached to each. “We get the keys next week” does not settle the ownership question. Keep planned dates visibly provisional. This lets you discuss insurance inception without prematurely giving a practical handover a legal effect. The buyer also understands why you need more than their moving date.

Make the inherited policy visible

When insured property is sold, section 95 VVG places the buyer in the relevant rights and obligations for the duration of their ownership. The existing building policy is therefore a central starting point. Establish whether such a contract exists, which building it identifies and which documents are available. Buying the house does not itself agree a new scope of cover or confirm that every desired peril is insured.

Ask for the policy schedule, applicable conditions and available endorsements. A premium invoice gives you an amount but does not explain every benefit. If only an old copy is available, establish the current contractual position with the responsible insurer under the necessary authority. Pay particular attention to subsequent agreements that changed the original documents. You can then assess the cover actually inherited instead of comparing a new quotation with an obsolete policy version.

Match the building details to the purchased property. Do the listed garage and any extension belong to it? Is its use still accurate? Which deductibles and insured perils are documented? These questions help the buyer understand the policy as a description of their house. Unclear entries become specific matters to investigate. An unresolved item stays unresolved until there is a reliable answer; you treat it as neither included nor excluded.

If the seller cannot initially provide a policy, distinguish missing documents from an established absence of a contract. In the first case, obtain policy information with the authorised parties. In the second, advice about arranging new cover starts from a different foundation. Explicitly ask what supports the statement about previous insurance. This distinction determines whether continuation can be examined or a possible new inception must first be clarified with the insurer.

Give notice of the sale its own place

Section 97 VVG requires the seller or buyer to notify the insurer of the sale without undue delay. Establish whether this has happened and what evidence is available. A message to your office and the insurer’s knowledge are different matters. For handling the case, it helps to be able to trace the recipient, content and receipt. “The seller will probably have done it” leaves an important question unanswered.

Agree who will give notice and which documents are required. The statutory consequences of failing to notify depend on further conditions; section 97 also contains exceptions. Do not describe complete loss of cover as automatic. Your advice helps by resolving the outstanding notice promptly and obtaining a clear response from the insurer. If the legal consequences are already disputed, qualified legal professionals should assess the individual dispute.

Compare continuation and replacement against the same needs

Now ask what the buyer wants to change. Is the aim a clear premium reduction, a specific additional cover or an explanation of an existing clause? A concrete answer shapes the comparison. If the buyer mentions only a lower annual figure, discuss which differences they would accept. A cheaper quotation with a larger deductible answers a different question from a cheaper quotation with comparable benefits. Both can be examined, with a clear explanation of the trade-offs.

Compare the current policy and the alternative using the same building information. Use identical confirmed details about occupancy and relevant building characteristics for both. Otherwise, a premium difference could simply result from different inputs. For each material difference, ask how it affects the buyer’s concern. A longer list of benefits adds little if it does not answer their specific question or obscures another provision they value.

Continuation also deserves a clear outcome. The existing cover may fit the needs discussed, and the buyer may initially want an organised set of documents. The current insurer may be able to make a binding amendment. Alternatively, a replacement may demonstrably reflect the buyer’s wishes better. Explain your recommendation through the actual comparison. Section 61 VVG sets the framework for intermediaries’ needs-based advice and documentation; your working overview supports that professional task.

Consider cancellation and replacement cover together

Section 96 VVG provides special cancellation rights for both buyer and insurer following a sale. For the buyer, it specifies one month after acquisition; if they did not know about the insurance, it refers to their later knowledge. Check the actual deadline and effective exercise against the documented facts. Section 98 VVG permits contractual requirements concerning the form of notice and the buyer’s cancellation. A rough date from the first telephone conversation is therefore insufficient.

Always discuss cancellation alongside the intended replacement. An application and binding confirmation of cover are different stages. Establish what acceptance or confirmation actually exists, the inception date it states and the agreements included. If the old end date and new start date are not aligned, that remains an open task. The buyer can then distinguish the decision to switch from the question of whether implementation has been fully secured.

Also explain that the insurer has a special cancellation right. Continuation therefore involves more than the buyer expressing a preference. If a cancellation has arrived, check its contents and dates and prioritise the follow-up advice accordingly. Avoid promising that another insurer will accept the building on identical terms. Its acceptance requires its own assessment. Keeping actual contractual positions visible makes the comparison more dependable.

Separate premiums from the purchase settlement

Examine the premium separately. Section 95 VVG addresses the seller’s and buyer’s joint and several liability for the current insurance period. Section 96 contains a specific premium rule when cancellation occurs under that section. An internal allocation of purchase costs and the insurer’s claim therefore cannot simply be equated. First identify the relevant relationship: who is requesting which amount and on what basis? Resolve the individual settlement using the documents and the responsible parties.

Use confirmed terms for your quotation comparison. Identify whether an amount represents a full annual premium, a different payment arrangement or only a remaining period. An apportioned amount from the old policy cannot usefully be compared directly with a whole new insurance year. Put deductibles and benefit differences visibly alongside the premium. The buyer can then see whether apparent savings come from the price or merely from a different basis of comparison.

Follow a fictional case through to the decision

The following example is entirely fictional. A buyer has received the keys and wants another tariff immediately. They know the seller’s premium invoice but have neither current endorsements nor reliable evidence of the ownership registration. You first clarify those foundations and notification of the sale. The buyer gets a specific task: provide the current schedule and endorsements, plus the confirmation needed to establish ownership. Until then, the comparison remains provisional.

Once those points are clarified, the fictional buyer turns out to want to avoid a particular deductible. You compare the existing cover and an alternative on precisely that point and the other requirements discussed. The alternative has only been applied for. Your recommendation can already explain why it is relevant, while implementation remains dependent on binding acceptance and suitable timing. The buyer understands both decisions and can ask focused questions.

If instead the existing insurer confirms a suitable amendment, continuation becomes another assessable option. Put that confirmed amendment alongside the replacement quotation. The deciding factors are the terms actually agreed and a workable sequence. Your advice then supports the buyer throughout the purchase. Another tariff comparison is useful where it resolves an outstanding decision; a question already answered does not need to be reopened.

Record the outcome in a short decision note

Finish by explaining which contractual position you examined, the buyer’s stated needs and why you recommend continuation, amendment or replacement. Add confirmed dates and remaining tasks. The insurer’s answer to a specific question about replacement cover may still be outstanding. Such a note helps the next conversation by distinguishing the advisory outcome from implementation still to come. Complete the required advisory documentation according to the individual case.

Ask the buyer to explain the next step in their own words. Do they understand which policy is relevant now and which confirmation is still needed? Do they know who is handling the outstanding legal or contractual question? Once these points are clear, an initial price request becomes a manageable decision. Your office demonstrates its value through guidance during the ownership change and builds a sound foundation for continuing care of the property.

Reach new owners for your advice

Register your business on the residential building insurance enquiry page. Your access leads to webRichtung Customer, where you see the current price before placing a binding order. The enquiry opens the conversation. You personally clarify ownership, the existing policy and the desired change afterwards. Use that introduction to explain the advisory service your business actually provides.

Sources and scope

Germany; originals accessed on 18 October 2026. The complete sections 95–98 and 61 VVG and sections 873 and 925 BGB linked above provide the statutory basis. Also read: GDV model conditions VGB 2022, value 1914, June 2026, particularly A23. The GDV model is non-binding; the actual policy and circumstances govern the individual assessment. The proposed conversation and working notes are organisational aids for your office.