Does liability insurance cover damage to your rented flat?

Guide figures for personal liability insurance that includes damage to rented property, without a deductible.

This means damage to the flat you rent: the iron that fell onto the parquet, the crack in the washbasin, the burn mark on the worktop of the fitted kitchen. Many older contracts excluded such damage, because it concerns things you use yourself.

Today most tariffs include damage to rented living space. What matters is that the policy states a sufficient limit and not just a small amount for this part.

In the UK and US, renters often rely on the deposit or on renters insurance that bundles belongings and liability. In Germany damage to the flat is a matter for your personal liability insurance (Privathaftpflichtversicherung), while your own belongings need separate contents insurance.

German landlords usually take a deposit (Kaution) of up to three months' basic rent and inspect the flat carefully when you move out. Many flats are let unfurnished, sometimes even without a kitchen, so a fitted kitchen you rent with the flat is a valuable item. Insist on a handover report (Übergabeprotokoll) with photos when you move in. Some landlords ask for proof of liability insurance before signing.

Under § 538 BGB a tenant is not liable for changes caused by normal use of the flat. A usual number of wall plug holes, slightly worn floors or sun marks on the wall do not have to be paid for at all, which is why no insurance pays for them either.

Disputes often arise when landlords keep back the deposit after you move out. Then it is worth checking first whether there is any damage at all. Your liability insurer checks this too and rejects unjustified claims.

Often excluded are glass, the landlord's heating, hot water and electrical appliances, and mould that has built up over a long time. Movable items belonging to the landlord, such as a washing machine rented with the flat, are often not treated as rented property either.

If you live in a furnished flat or rent a fully equipped holiday flat, check whether movable furnishings are covered too.

If you live in your own house or flat, this part of the cover plays no role in daily life. It becomes important again when you rent holiday flats, hotel rooms or a second home.