Can your landlord charge you for building insurance in Germany?

Averages from the German Tenants' Association operating costs survey, converted to flat sizes.

The German Operating Costs Ordinance (Betriebskostenverordnung) names the cost of property and liability insurance explicitly. It covers insuring the building against fire, storm, water and other natural hazards, glass insurance and liability cover for the building, the oil tank and the lift.

Only the ongoing premium can be passed on. Money the landlord pays after a loss, such as a deductible, counts as repair costs and stays with the landlord, as do management costs.

Your contract must state that you pay operating costs. A reference to the Operating Costs Ordinance is usually enough. If you have a flat rate (Pauschale) or an all-inclusive rent, the landlord cannot bill insurance on top.

The landlord must act economically. You do not have to pay the full amount for a clearly overpriced policy, but in a dispute you usually need to show that similar cover was available for less. Unless agreed otherwise, costs are split by living space.

Paying towards the policy brings a benefit. Under German Federal Court of Justice case law, the building insurer does not take recourse against a tenant who causes damage through simple negligence. If your kitchen catches fire after a small slip, the building insurer pays without coming after you.

That protection ends at gross negligence or intent. Personal liability insurance (Privathaftpflicht) that includes damage to rented property is therefore still worth having. Your own furniture is never covered by building insurance, you need contents insurance (Hausratversicherung) for that.

In the UK or the US, building insurance is often hidden inside the rent. In Germany it appears as its own line in the annual operating costs statement (Nebenkostenabrechnung), which you must receive within twelve months after the billing period ends.

The statement is in German and the line is usually called Sach- und Haftpflichtversicherung or Gebäudeversicherung. Divide it by your living space and by twelve to compare it with the average.