Insurance for property management, WEG administration and rental management in Germany
As a property manager you handle other people's money and make decisions about other people's buildings. Miss a warranty deadline, carry out a resolution the wrong way or let the buildings insurance lapse, and the owners will claim damages from you. That is why professional indemnity is compulsory for residential property managers in Germany. This page shows what else makes sense.
It is enough for your licence, but in practice often not. A single case, such as a warranty deadline missed on a new roof or a refurbishment contract awarded the wrong way, can run to six figures on a large estate. Once you manage a few hundred units, we recommend 1 million euros per claim or more. The extra premium is usually small.
What goes wrong in this trade
01
Deadlines and warranties
Defects in the common parts are reported too late and the builder's warranty has expired. The owners then ask you, the manager, to pay for the repairs.
02
Resolutions handled wrongly
A contract is awarded without a valid resolution, an overpriced quote is accepted, a special levy is split incorrectly. Since the 2020 reform of the German Condominium Act (WEG), managers have more powers and more responsibility.
03
The building is not insured
The buildings insurance has been cancelled or the sum insured is too low, and then the water damage happens. The gap comes back to the manager.
04
Other people's money
Service charge accounts, reserve funds and tenants' deposits: theft by your own staff and fraud using fake invoices are real risks.
05
Data protection and cyber attacks
Bank details, tenant files, meter readings: one hacked property management system affects thousands of people and stops all your annual statements.
06
Keeping the premises safe
Gritting in winter, loose railings, broken playground equipment: the manager has to organise all of it. If someone falls, the claim is often made against the manager as well.
Professional indemnity is required by law for managers of owners' associations and rented homes and covers mistakes with deadlines, resolutions and accounts.
For disputes over your fees, dismissal as manager and employment law, and for criminal proceedings, for example after an accident on a property you manage.
A company pension helps you keep good bookkeepers and property officers, who are hard to find in this industry.
What it costs: example prices
The compulsory cover is priced mainly on your turnover and the number of units you manage. For small and medium sized firms the premiums are modest; with higher cover and fidelity insurance they rise accordingly.
Insurance
Example
Typical range
Professional indemnity
Manager with 40 units and 50,000 euros turnover, 500,000 euros of cover
about 120 to 250 euros a year
Professional indemnity
Manager with 300 units and 110,000 euros turnover, 500,000 euros of cover
about 230 to 460 euros a year
Professional indemnity
Management firm with 1,500 units and 500,000 euros turnover
about 670 to 1,200 euros a year
Business liability
Office with up to five employees
about 80 to 200 euros a year
Cyber insurance
Property management firm with around 500,000 euros turnover, 500,000 euros of cover
about 500 to 900 euros a year
For comparison: For a small manager, the compulsory professional indemnity and public liability together cost about as much a year as the fee for managing a single flat in an owners' association.
Guide prices excluding German insurance premium tax, as of September 2026,
based on published examples from comparison sites and our own quoting experience.
With 1 million euros of cover per claim, the premium rises by roughly a third to a half.
Six things that really happen to property managers, all packed into a single Monday. Click through the day and see who pays.
Damage so far€147,400
The owners of a WEG demand the cost of a new flat roof because the manager only reported the defects after the warranty had expired.
€85,000 · Paid by: Professional indemnity
A tenant slips on the icy path outside a managed building. Nobody had been hired to clear it.
€14,000 · Paid by: Business liability
The management software has been encrypted by hackers. Statements and bank details of 800 owners are affected.
€28,000 · Paid by: Cyber insurance
A resolution on the façade refurbishment is challenged because the meeting invitation was flawed. A new meeting, an expert and delay costs from the contractor follow.
€12,000 · Paid by: Professional indemnity
An owners’ association removes you early as its manager. You sue for your fee for the rest of the contract term.
€7,500 · Paid by: Business legal expenses
During an inspection a property officer forces a rotten cellar door, damaging a tenant's door.
€900 · Paid by: Business liability
Which package would you have had?
Paid by insurance: €0
Out of your own pocket: €147,400
Illustrative amounts before any excess.
What is paid depends on the policy terms.
Practical tips from your broker
Choose at least 1 million euros per claim as soon as you manage estates with more than 100 units. The legal minimum is only the floor.
Make sure the policy also covers commercial rental management, management of individual flats (Sondereigentumsverwaltung) and building project support, if you offer them.
Take out fidelity insurance against embezzlement by staff. It is a separate policy and not part of professional indemnity.
Keep a deadline calendar for warranties and for the insurance policies of each building, and check the buildings sum insured every year.
Check whether your policy keeps covering you after it ends (run off cover), because mistakes are often found years later.
Remember the training duty of 20 hours every three years under § 34c GewO; without proof you put your licence at risk.
Why NAMMERT for your business
We know licensing rules
As insurance brokers we work under a trade licence ourselves, with compulsory insurance and proof of training. We know what a supervisory authority wants to see.
Several insurers compared
Professional indemnity policies differ on run off cover, exclusions and whether managing individual flats is included. We put the quotes side by side for you.
We know claims from the inside
In boat insurance we handle claims ourselves. That helps you when owners make demands and the insurer is checking whether you breached your duties.
For your buildings too
We are happy to compare the buildings, liability and natural hazards insurance of the owners' associations you manage. A family business since 1989, and free for you because the insurer pays our commission.
Frequently asked questions
Questions and answers
Is professional indemnity compulsory for WEG administrators?
Yes.
Anyone who manages the common property of an owners' association,
or rented homes on behalf of others,
counts as a residential property manager under § 34c GewO and must hold at least 500,000 euros per
claim and 1 million euros a year under § 15 MaBV.
Does the requirement also apply to commercial property?
No, it applies to residential property.
If you only manage offices and shops, you do not need a licence under § 34c GewO,
but you should still have professional indemnity.
What does insurance for a property management firm cost?
The compulsory cover starts at about 120 euros a year for small managers.
A firm with a few hundred units usually pays 1,000 to 2,000 euros for professional indemnity,
public liability, cyber and legal expenses together.
Who pays if an employee embezzles service charge money?
Not professional indemnity, which excludes intentional acts.
That is what fidelity insurance is for,
and it makes particular sense for managers who hold client trust accounts.
Is the manager liable for clearing snow and ice?
The manager has to organise and supervise it.
If nobody was hired or the checks were skipped,
the manager can be liable alongside the owners' association.
Public liability covers this.
Do I need my own insurance as a rental manager if the owner is insured?
Yes.
The owner's policies protect the building and the owner, not your mistakes as manager.
For residential property, your own professional indemnity is compulsory.
NAMMERT insurance broker
Request quotes for Property manager
The recommended covers are ticked.
Change what does not fit; we compare quotes, in English.
Thank you, we have your request.
We will be in touch within one working day. If it is urgent: +49 3375 29 12 77.
