Renting out a property can be lucrative, but it also brings legal risks. Disputes with tenants over rent arrears, service charge statements, damage in the flat or termination of the tenancy can lead to complicated and costly legal action. Landlord legal expenses insurance (Vermieter-Rechtsschutz) gives landlords the protection they need against these risks.
Landlord legal expenses insurance pays for legal advice and court proceedings arising from the tenancy. This includes eviction actions over unpaid rent, disputes about the service charge statement, disputes over rent reductions and damages claims against the tenant.
It is especially relevant for private small landlords who rent out one or two properties. They often lack the legal experience and the money to fund long court cases out of their own pocket. Legal expenses insurance (Rechtsschutzversicherung) lets them enforce their rights without being left with the bill.
Even when the law seems to be on your side, tenancy law is complex, and a professional lawyer is often essential. Landlord legal expenses insurance makes sure you can get expert support at any time.
We help you choose the right legal expenses cover for your rental situation and understand the relevant areas of cover.
Landlord Legal Expenses Insurance Benefits
Core cover: Legal expenses for housing and property (rent arrears, neighbour disputes), tax legal expenses for property matters (property charges, sewage fees), legal expenses telephone service for first legal advice from a lawyer, mediation costs.
Sum insured: Up to 5 million euros.
Costs covered: Lawyer's fees, court costs, witnesses and expert witnesses, expert fees, the other side's costs if the case is lost.
Insured scenarios: Loss of rent or rent arrears (including tenants who rent with no intention to pay), disputed service charge statements, cosmetic repairs not carried out, rejected rent increase, termination for personal use (Eigenbedarfskündigung), rent deposit problems, breaches of the lease or house rules, neighbour disputes, incorrect property tax assessment, third-party damages claims.
Each rented unit (flat, commercial unit, garage, parking space) needs separate insurance. The cost cannot be passed on to the tenant. Tax-deductible for landlords.