What insurance do I need as a landlord in Germany?

What insurance do I need as a landlord in Germany?


A dispute with your tenant can quickly become unpleasant and expensive for you as a landlord. Since Germans have a pretty high “Zahlungsmoral” it is very unlikely but delinquent rent and vandalism are possible scenarios owning an apartment in Germany. Despite the “Berliner Verfahren” legal enforcement can take months, and we all know the tenant enjoys some sort of legal protection in Germany. On the other hand water damage, falling roof tiles or a kitchen fire can also be unpleasant and costly for you. Hence a proper preparation and foresight is required so that your property investment generates stable income and does not become an uncontrollable cost factor for you.

The only way to avoid being left helpless in an emergency is to know which insurance is right for you.

The essential coverage

Haus- und Grundbesitzerhaftpflichtversicherung (house and property owner liability insurance)

Costs:

The expected costs are around € 50 per year.  These costs are tax deductible. Important to keep the receipts and contract with the insurance company


Legal protection insurance (Rechtsschutzversicherung)

—> this insurance is necessary if you manage your property on your own. It will cover your legal fees. But again it is very important to read the fine print. I know it is time consuming, but make sure it covers everything you consider necessary. Otherwise you end up paying a whole lot more.


Rent loss insurance

Repayment of delinquent rent

Covers renovation and refurbishment in the scenario of vandalism.


Costs:

The rental loss insurance costs around € 70per year. The rental loss insurance costs are tax deductible

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