What insurance do I need for a condominium in Germany?
In short
What insurance do I need for a condominium in Germany? The building is insured by the owners' association (Eigentümergemeinschaft); your share is part of the monthly service charge (Hausgeld), often EUR 115 to 170 a year. You need contents insurance for your belongings and fittings you paid for, plus personal liability. If you let it, consider landlord legal expenses cover for about EUR 129 to 145 a year.
How the costs add up when the association insures the building.
Share of building insurance via service charge
about EUR 115 to 170 a year
Contents: 85 × EUR 650 plus kitchen = EUR 67,250 sum insured
about EUR 100 to 160 a year
Personal liability for couples
about EUR 60 to 120 a year
Together about EUR 275 to 450 a year, of which around EUR 160 to 280 for policies you take out yourself.
What the association insures for your condominium
Under section 19(2) no. 3 of the Condominium Act (WEG), proper management includes adequate insurance of the common property at new value and homeowners' liability insurance (Haus- und Grundbesitzerhaftpflicht). The property manager takes out both for the whole building, and you pay your share through the service charge.
In practice the association's building policy usually includes the individual flats. Whether your separate property (Sondereigentum) such as screed, interior walls or bathroom is covered is stated in the policy; ask the property manager to show it to you.
Insurance
Who takes it out
Who pays
Building insurance for the whole house
association via the property manager
all owners via the service charge
Homeowners' liability
association
all owners via the service charge
Contents including your own fittings
you
you, if let the tenant for his own things
Personal liability
you
you
Landlord legal expenses
you, only if you let
you, cannot be passed on
Contents: your furniture and the fitted kitchen
If you live in your condominium yourself, you need contents insurance just like a tenant. Important for owners: under the model terms, fitted furniture and a fitted kitchen that you bought at your own cost as a flat owner count as contents. Include their value in the sum insured.
High quality floors, stairs or bathrooms belong to the building, however. If you invested a lot here, ask the property manager whether the building policy reflects the higher value.
Liability for your condominium
For damage coming from common property, such as a roof tile or an icy path, the association's homeowners' liability pays. For anything you cause in your flat, such as water leaking into the neighbour's flat below, your personal liability insurance is responsible.
For an owner occupied condominium, liability as a flat owner is included in many personal liability tariffs. Whether a let flat is covered depends on the tariff; some include one let flat, others require an add-on.
If you let your condominium
Landlord legal expenses insurance pays lawyer and court costs in disputes with your tenant over rent, notice or damage, for one flat about EUR 129 to 145 a year. It does not replace lost rent itself.
If the flat becomes uninhabitable after a fire or water damage, loss of rent may be covered by the building insurance; the model terms provide for it. Check whether the association's policy does this for your flat. Your tenant insures his own contents.
Excess and natural hazards: the association decides
If the building insurance has an excess, it is in principle borne by the association, even if the damage only affects one flat. Pay attention at the owners' meeting to how high it is and whether it suits the building.
Whether heavy rain and flooding are covered by a natural hazards module is also decided by the association. If it is missing, you can propose a resolution. For your contents you can choose the module yourself.
What you don't need as a flat owner
Your own building insurance just for your condominium usually means paying twice, as does your own homeowners' liability for the building. Both run through the association.
The purchase itself, with loan, residual debt cover and the day ownership passes, follows its own rules. You find them on our page about buying a flat.
Step by step
Ask the property manager for the association's building and liability policies.
Check whether separate property, natural hazards and loss of rent are included and how high the excess is.
Calculate the contents sum and add fittings you paid for.
Check in your personal liability whether the flat is covered as owner occupied or let.
If you let the flat, decide on landlord legal expenses.
Raise gaps in the association's policy at the owners' meeting.
Checklist
Association's policy read
Separate property included in building insurance
Fitted kitchen in the contents sum
Personal liability matching owner occupation or letting
Natural hazards for building and contents clarified
If let: legal expenses and loss of rent checked
Common mistakes
Taking out your own building insurance although the association already insures the building
Forgetting the fitted kitchen you paid for in the contents sum
Letting the flat without checking whether personal liability covers it
Never looking at the association's policy and discovering gaps only after a claim
Questions and answers
Frequently asked
Do I have to take out building insurance for my condominium?
Usually not.
The association insures the building under section 19 WEG and you pay your share through the
service charge.
Who pays for water damage in my condominium?
Damage to the building, including screed and walls, usually the association's building insurance.
Your contents insurance pays for your furniture.
Is the fitted kitchen part of the building or of contents?
If you paid for it yourself as owner, it counts as contents under the model terms.
Who bears the building insurance excess?
In principle the association, even if only one flat is affected,
unless something else was resolved.
Do I need separate liability cover as landlord of a condominium?
Some personal liability tariffs include a let flat, others do not.
If it is not included, you need an add-on.
Can I pass my contents insurance on to my tenant?
No.
Your tenant insures his own contents.
Only building insurance and the building's liability can be passed on.
