How do I insure an apartment building in Germany properly?
In short
This is how to insure an apartment building in Germany properly: buildings insurance against fire, mains water, storm and hail, plus natural hazards, loss of rent and property owner's liability. A published example with six flats costs about EUR 1,060 a year. Under section 2 no. 13 BetrKV you may usually pass the insurance premiums on to tenants.
Published premium examples for apartment buildings, as of 2026.
Example
Typical range
Apartment building, entry level without detailed cover data
from about EUR 23 a month, around EUR 275 a year
Apartment building, starting price of a direct insurer
from about EUR 400 a year
6 flats, 500 square metres, 3 storeys, with natural hazards, no deductible
about EUR 1,060 a year, around EUR 89 a month
Property owner's liability, 2 flats, EUR 5 million cover
from about EUR 36 a year
Guide values as of October 2026 from published tariff examples.
Location, year of construction, construction and commercial share move the premium a lot.
The liability costs for six flats and the rent in the example are guide values from quoting
practice.
Worked example
Six flats, 480 square metres, built 1965, gas heating
An owner insures her let building fully and passes the costs on through the service charges.
Buildings insurance with natural hazards
about EUR 1,000 to 1,100 a year
Property owner's liability
about EUR 40 to 100 a year
Loss of rent after property damage, 6 flats
included in the buildings tariff
Charge per square metre of living space
about EUR 0.18 to 0.21 a month
Together about EUR 1,040 to 1,200 a year. A tenant with 80 square metres pays around EUR 15 to 17 a month of it.
Which covers an apartment building needs
Buildings insurance (Wohngebäudeversicherung) is the core. It pays for damage to the building by fire, mains water, storm and hail. Because many pipes, bathrooms and kitchens come together in a building with several flats, mains water is the most frequent type of loss. Add natural hazard cover for flooding, heavy rain and backflow, even away from rivers.
As a landlord you are also liable if someone slips on an icy path or a roof tile hits a car. That is what property owner's liability (Haus- und Grundbesitzerhaftpflicht) is for. With oil heating, add water pollution liability for the tank.
Cover
What for
Can be passed on to tenants?
Buildings insurance
fire, mains water, storm, hail to the building
yes
Natural hazards
flooding, heavy rain, backflow, landslide
yes
Glass insurance
windows, glass doors in the stairwell
yes
Property owner's liability
damage to third parties caused by the property
yes
Liability for oil tank or lift
environmental damage, lift accidents
yes
Landlord legal cover
disputes with tenants
no
Rent default insurance
missing rent without property damage
no
Sum insured without underinsurance
An apartment building is quickly worth millions. If the sum is set too low, the insurer cuts every claim in proportion. A policy in which the insurer waives the underinsurance defence is safe, for example because the value was set by living space or by the 1914 value using its valuation form.
Report every extension: a converted loft, new balconies, a lift or a solar system. Otherwise the value no longer matches the building.
Loss of rent after a claim
Under the German insurers' model terms, the insurer replaces lost rent if tenants are entitled to reduce the rent or terminate because of an insured loss, including ongoing operating costs. How many months are paid is set by the policy; the model terms leave the number open.
After a fire in an apartment building, several flats are often empty for months. Look for a long maximum period. For commercial units, loss of rent under the model terms applies only if specifically agreed.
Your duties as owner
The model terms list safety rules you must follow: keep water-carrying systems, roofs and external parts in good repair and fix defects at once, check empty flats regularly, heat in winter or shut off and drain the pipes, keep backflow valves working.
Between two tenancies a flat often stands empty. Decide who checks it in winter. Frost damage in an empty flat often reaches the flats below.
Passing costs on to tenants
Under section 2 no. 13 of the Operating Costs Ordinance (BetrKV), the costs of property and liability insurance are operating costs: insurance of the building against fire, storm, water and other natural hazards, glass insurance and liability for the building, oil tank and lift. The rental contract must provide for it.
You pay the deductible in a claim, landlord legal cover and insurance against tenants who do not pay yourself.
If the building is divided into owner-occupied flats
If the flats belong to different owners, the owners' association insures the whole building through the property manager. As the owner of a single flat you then need no buildings insurance of your own, only contents, your own fixtures and, if you let, loss of rent.
Step by step
Collect living space, storeys, year of construction and construction of all parts of the building.
Have the value set by living space or 1914 value, with a waiver of underinsurance.
Agree natural hazard cover and a long maximum period for loss of rent.
Declare commercial units, lift, oil tank and solar system.
Add property owner's liability.
Check that the rental contracts allow passing on insurance costs.
Arrange who checks empty flats in winter.
Checklist
Waiver of underinsurance in the policy
Mains water including drainage pipes on the plot
Natural hazards included
Loss of rent with enough months
Commercial tenants declared and commercial loss of rent agreed
Property owner's liability, with water pollution cover if there is an oil tank
Gross negligence covered
Common mistakes
Setting the sum by the purchase price instead of the rebuilding value
Not reporting a loft conversion
Leaving the ground-floor shop out of the application
Leaving empty flats unheated and unchecked in winter
Assuming buildings insurance also covers liability towards passers-by
Questions and answers
Frequently asked
What does buildings insurance for an apartment building cost?
Depending on size and location, from a few hundred euros a year.
A published example with six flats and natural hazard cover costs about EUR 1,060 a year.
Can I pass the insurance on to tenants?
Yes, if the rental contract provides for it.
Building, glass and building liability insurance are operating costs under section 2 no.
13 BetrKV.
Legal cover and deductibles are yours.
Do I need separate liability cover for the building?
Yes.
Buildings insurance pays for damage to the house,
not for damage third parties suffer because of your property.
That is what property owner's liability is for.
What if there is a shop in the building?
Declare it in the application, because a business changes the risk.
Under the model terms, loss of rent for commercial units must be agreed separately.
Who checks an empty flat?
You as the owner.
Empty rooms must be checked regularly and heated or drained in winter,
otherwise the insurer may cut payment for frost damage.
How long does the insurer pay loss of rent?
As long as the flats cannot be used, at most up to the agreed number of months.
That number is in your policy, so check it when you sign.
