Who pays for a hotel if your home in Germany becomes uninhabitable?
In short
In Germany, if your own home becomes uninhabitable after an insured loss, building insurance (Wohngebäudeversicherung) pays the local rental value for 12 to 36 months, depending on the tariff. Who pays the hotel? Usually contents insurance (Hausratversicherung), in the example tariff up to EUR 100 a day for 200 days. Tenants owe no rent for a flat they cannot live in.
Limits from published 2025 tariff overviews and the German model terms.
Example
Typical range
Rental value for owner-occupied rooms, three tariff levels
12, 24 or 36 months
Hotel costs in contents insurance, example tariff
EUR 100 a day, up to 200 days
Hotel costs in building insurance, example tariff
EUR 100 a day, up to 200 days, or lost rent
Hotel costs including extras in another building tariff
up to EUR 200 a day, at most 200 days
As of October 2026.
The model terms leave days, daily rate and months open, each insurer sets its own values.
Amounts in the worked example are assumed values.
We obtain the exact quote for you.
Worked example
Owner, kitchen fire, home uninhabitable for 8 months
Assumed values, limits as in the example tariffs above. Both the contents and the building are damaged.
Local rental value including running costs
EUR 1,300 a month
Rental value from building insurance, 12-month tariff: 8 × 1,300
EUR 10,400
Hotel costs from contents insurance: 200 days at up to EUR 100
up to EUR 20,000
Hotel nights 201 to 240
paid by you unless another policy pays
Whether rental value and hotel costs are paid side by side or offset depends on your terms. Had the repairs taken 14 months, a 12-month tariff would have left EUR 2,600 uncovered.
Who pays what
Two policies work together. Building insurance compensates you for losing the use of the home, contents insurance covers hotel costs. Whether you own, rent or let decides which policy pays.
There must always be an insured loss, such as fire, burst pipes, storm or hail. After a flood, only those with natural hazards cover (Elementarschutz) get paid.
Your situation
Building insurance
Contents insurance
Rent
Owner living in the home
local rental value until the tariff limit
hotel costs up to the daily cap
not applicable
Tenant
pays the landlord's lost rent
the tenant's hotel costs
not owed while uninhabitable
Landlord
lost rent including running costs
not affected
tenant does not pay
Rental value: money for your own home
Under the German model terms, building insurance pays the local rental value (Mietwert) of rooms you live in yourself, including running costs. The condition is that you cannot reasonably be expected to use at least part of the home.
It is paid until the rooms can be used again, for no longer than the agreed number of months. A published 2025 tariff overview shows 12, 24 or 36 months depending on the level. If you delay the repairs through your own fault, the claim ends earlier.
Hotel costs: which policy pays
The contents insurance model terms cover a hotel or similar accommodation without extras such as breakfast, until the home is habitable again. The insurer sets the number of days and the daily rate, in the example tariff EUR 100 a day for up to 200 days.
Building insurance tariffs can include hotel costs too. Under the model terms they only pay if no other policy does, and only the part above the rental value. A German higher regional court has also ruled that contents insurance pays hotel costs only if the contents themselves suffered an insured loss. If only the building is damaged, the rental value from building insurance carries the load.
When it gets tight
Repairs after a fire or flood often take more than a year. A tariff with 12 months of rental value and 200 hotel days then does not last until you move back in.
You need no add-on if your tariff already includes 24 months of rental value and your contents insurance has hotel costs with a suitable daily cap. Look at natural hazards cover instead, because without it neither policy pays after flooding.
Step by step
Report the loss to both your building and your contents insurer straight away, both may pay.
Clarify whether part of the home can still reasonably be lived in.
Keep all hotel invoices and have breakfast and extras shown separately.
Support the local rental value with the local rent index (Mietspiegel) or comparable listings.
Book tradespeople quickly, because a delay through your own fault ends the rental value earlier.
Checklist
Rental value for owner-occupied rooms for at least 24 months
Hotel costs in contents insurance with a daily cap that fits your family
At least 200 hotel days
Natural hazards cover if you live near a river, on a slope or in a hollow
Return travel from holiday after a major loss included
Common mistakes
Assuming building insurance always pays the hotel
Renting without your own contents insurance and relying on the landlord's policy
Trying to claim breakfast and minibar
Letting repairs drag on, which ends the rental value earlier
Questions and answers
Frequently asked
My home is uninhabitable after water damage. Who pays the hotel?
First your contents insurance, if it includes hotel costs and your contents were damaged too.
Building insurance pays the local rental value.
Do I get money if I stay with relatives?
The rental value yes, under the model terms it does not depend on a hotel bill.
Hotel costs are only paid if they are actually incurred.
How long does building insurance pay the rental value?
Until the home can be used again, for no longer than the agreed months.
A 2025 example tariff shows 12, 24 or 36 months.
Do I have to keep paying rent as a tenant?
No.
Under section 536 of the German Civil Code you owe no rent while the flat cannot be lived in.
If you can use part of it, the rent is reduced.
What if only part of the home is uninhabitable?
If it is reasonable to stay in the usable rooms,
the model terms pay neither rental value nor hotel.
Is breakfast at the hotel refunded?
Not under the model terms, they cover the room without extras.
Some tariffs include extras.
Does insurance pay for a hotel after a flood?
Only if you have natural hazards cover.
Without it the flood is not an insured loss, so rental value and hotel costs are not paid either.
