landlord insurance : These are important

 Whoever buys a house often does not want to live in it themselves, but rather rent out the entire property or just parts of it. The regular rental income can be used to pay off an ongoing loan and, thanks to rising rent levels, is often a nice extra income. But in reality, damage to the roof, disputes with tenants and other unplanned events “hail” many of the positive balance. To avoid this, there are various insurance policies for landlords that will cover the costs for you in the event of damage. We tell you which 5 types of insurance are almost indispensable and what you should consider.

Important in advance: As a landlord, you are not legally obliged to take out any insurance. Nevertheless, comprehensive insurance cover makes sense, since many cases of damage can quickly become very expensive. As is so often the case with insurance for landlords, it is better to have than to need it.

Homeowners insurance for home damage

This insurance covers costs that arise directly on the building and permanently installed furnishings. The basic protection is divided into damage caused by fire, mains water or storm. The protection can be supplemented by so-called elementary damage caused by extraordinary natural events such as earthquakes, heavy rain or avalanches. We have put together a separate guide on residential building insurance for you in which cases can be insured and which costs are covered.

Homeowners liability landlord insurance

If you rent out a property, you have a duty to ensure that the house and property can be entered and used by others without danger. If, despite regular inspection and care, something happens and a third party is injured or the property of others is damaged, the house and property owner liability insurance will take over the claims for damages for you. In this context, the insurance company also examines the claims, i.e. whether they are justified. You also benefit from passive legal protection insurance. Read our article on Homeowners Liability Insurance for more details.

Residential liability landlord insurance for a rented condominium

If you "only" rent out a condominium instead of an entire house , you take out residential liability insurance in addition to house and landowner liability insurance, which in this case is taken out via the community of owners. While the house and landowner liability insurance pays for damage in the common area - i.e. in the stairwells or in the courtyard - the home liability insurance covers cases that are solely related to your home. For example, if a defective kitchen appliance causes a fire. We will provide you with more detailed information in a residential liability insurance guide.

Legal protection for landlords: valuable in disputes

Ideally, you will find a tenant for your apartment who always pays on time, takes care of minor repairs himself and is cooperative when it comes to major renovations. Unfortunately, the reality is often different, so that you as a landlord often even have to go to court (or be taken to court) to settle disputes. In order not to have to finance the legal and court costs out of your own pocket, take out landlord legal protection . We will tell you in a detailed legal protection article what you should consider.

Protection against rent losses and rent nomads

When push comes to shove, tenants sometimes withhold part of the rent or even suspend payments altogether. To protect yourself against this, there is loss of rent insurance . However, this only pays under very specific conditions and only in very specific cases. You can find out what these are in the article on rent loss insurance. Incidentally, the policy can be supplemented with protection against financial burdens caused by renting nomads .

What you should consider when choosing insurance for landlord insurance

Basically, it always makes sense that you look at your insurance holistically. Some policies overlap or offer similar modules that you can add to your insurance coverage. Therefore, take the time to check exactly what you have insured where, whether it might make (more) sense to switch from existing cover and whether or to what extent insurance cover fits your personal situation at all. Also, keep the following points in mind:

1. Do not save on the wrong corner and choose a sufficiently high sum insured. Cases in which third parties are involved in particular can quickly become very expensive.
2. Insurance policies for landlords also generally exclude negligence. For you as a landlord in particular, “ownership is an obligation”. If the insurance company can prove that damage or a dispute arose because you neglected your duty of care and you willfully accepted the damage, it will not pay. Therefore, document every claim very precisely and always keep evidence until the case is closed. The only exception is homeowners insurance, which can cover certain cases of negligence.
3. When taking out insurance, always distinguish whether it is about living space that is used by yourself, your relatives or complete strangers - that makes a difference from an insurance point of view.

Worth knowing about the costs of insurance for landlords

How expensive the insurance for landlords is depends largely on the property, i.e. how big it is, who and how many tenants live in it, how exactly it is used and how it is equipped. The amount of rental income can also play a role. At least as decisive for the annual costs is the sum insured, i.e. how much the insurance company pays in the event of damage.

5 types of landlord insurance should take out

Actually, it could be so easy: the months go by, the tenants diligently pay the rent and the landlord pays the monthly loan installment of the capital investment. But a storm, a path that is not cleared, a fire in the fitted kitchen or a dispute with the tenant can throw real estate owners out of financial balance.

In Germany, there is no obligation for landlords to take out certain types of insurance. Nevertheless, there are some insurances that are recommended because they can cover large financial risks. We give an overview of which sensible insurances you should consider.

Landlords should take out these five types of insurance :

1. Homeowners Insurance

2. Home and landowners liability insurance

3. Residential Liability Insurance

4. legal protection insurance

5. Loss of rent insurance

Homeowners Insurance

Indispensable for homeowners: homeowners insurance. This should be completed first. It covers damage caused by fire, hail, mains water and storms. In regions that are particularly at risk, it is advisable for homeowners to take out additional insurance against natural hazards such as landslides or floods as part of their residential building insurance. These can usually be booked separately as an option. The individual sum insured depends on the value of the property.

In the case of apartment owners, the community of owners takes care of taking out residential building insurance, which is then borne proportionately by each owner.

Costs for the insurance: approx. €100.00/year (but the prices vary greatly, since the year of construction, location, etc. are taken into account)
Tax deductible? Yes.

Home and landlord insurance liability insurance

This insurance is essential for landlords. Just as everyone should take out liability insurance, landlords should take out homeowners liability insurance.

Every landlady and landlord should take out a house and property owner liability insurance.

This insurance protects the landlord in the event of claims for damages from injured persons.
If, for example, a passer-by breaks a leg when crossing the carelessly cleared path of a property, homeowner's liability insurance protects the property owner in this case. Insurance covers the cost of hospitalization, medical bills, and other claims. Therefore, many experts consider this insurance to be necessary.

Can I pass the costs on to the tenants?
According to § 2 of the Operating Costs Ordinance (BetrKV), you can pass on the costs for the insurance to the tenants via clear contractual regulations in the rental agreement. However, these costs must be listed in the ancillary cost list for the tenants in a comprehensible manner.

Insurance costs:  from €40.00/year to approx. €150.00/year

Residential Liability Insurance

However, the house and landowner's liability insurance only applies in the area of ​​joint property. If one of the rare cases of damage occurs in an apartment - for which the tenant is not liable - apartment liability insurance makes sense. This is liable for a fire caused by a faulty kitchen appliance in the fitted kitchen or for a part of the ceiling covering that has come loose and injured someone. Residential liability insurance should be taken out to ensure that no landlord stumbles over his or her own damaged inventory. It can often also be booked separately as an option with private liability insurance.

Insurance costs: approx. €80.00/year
Tax deductible? no

Legal expenses insurance for landlords

Whether it's a neighborhood dispute or a tenant who doesn't want to hand over their apartment properly: landlords can also face legal disputes at times. Those who shy away from the high legal and court costs should rather take out legal protection insurance. Let an independent insurance broker advise you on benefits, costs and the sum insured.

Insurance costs: approx. €100.00 - €2,000.00 per year (depending on the number of residential units)
Tax-deductible? no

Loss of rent insurance

Investors who have not yet paid off their property fear a longer loss of rent. Rightly so: In addition to the monthly loan installment, money must be set aside for the maintenance and repair of a property - a longer loss of rent can therefore endanger capital investments. Landlords who want to protect themselves against possible late payment by tenants should take out rent loss insurance.


Insurance costs? approx. €100.00 (depending on the sum insured)
Tax deductible? no

Additional insurance for landlords

They move from rented apartment to rented apartment and yet never pay rent, often leaving the apartments neglected and inadequate: rental nomads - the nightmare of every landlord. In the meantime, landlords can protect themselves against such rent fraudsters with rental nomadic insurance. With this insurance, you should be particularly careful with the term and the sum insured.